Moody’s Investors Service continues to monitor the effects of March floods on credits along the Red River in Minnesota and North Dakota but so far has not taken any action, the agency reported.
None of the rated issuers contacted by Moody’s reported difficulty making debt payments in full and on time. North Dakota issuers primarily have May 1 due dates, while due dates in Minnesota tend to be in January and February.
“While the extent of the flood damage ranges from minimal to moderate, the vast majority of the entities we have spoken with report limited governmental disruption,” analysts wrote. “Short-term budgetary pressures may be expected; however, most of the affected municipal credits have the financial flexibility and contingency funds to absorb such outlays.”
Moody’s hasn’t taken any negative credit action and does not expect future action due to flood damage, which was more modest than expected and resulted in only short-term fiscal pressures.
