Moody's Outlines Sandy Action Plan

Moody's Investors Service has issued a brief action plan for public finance issuers affected by Hurricane Sandy.

"It will take time to fully assess the extent of the damage and to determine the ability of municipal issuers' to manage the added strain," Moody's said.

The rating agency said it is reaching out to affected issuers that it rates and will update the market regularly, as it has with past natural disasters. It plans to publish an update during the week of Nov. 12, and publish updates on individual issuers as necessary.

"As more information is received, we will have a better gauge on the impact of lost revenues resulting from facilities closures, potential delays in tax collection, and the full costs of repairing buildings and equipment," a Moody's spokesman said.

Moody's said its initial focus is to gauge issuers' preliminary estimates of physical damage, their financial ability to manage emergency response, recovery and related costs ahead of reimbursement from the Federal Emergency Management Administration, and any potential challenges to timely debt payments.

Storm disruptions have forced the closing of Moody's New York offices.

The agency said that Its public finance team is functioning remotely by using email, offsite conference calls, and in conjunction with offices in other cities.

"However, some analysts are still without access," Moody's said.

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