KBRA Releases Research – Coronavirus (COVID-19): Fed Provides Vital Assistance to State and Local Governments

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases commentary on the Federal Reserve’s new Municipal Liquidity Facility, which was announced on April 9.

The mechanism aims to help state and local governments manage the cash flow stresses caused by the revenue losses and extraordinary expenses incurred dealing with the coronavirus (COVID-19) pandemic and the subsequent ongoing economic shutdown. The facility will purchase up to $500 billion of short-term notes directly from states (including the District of Columbia) and larger counties and cities with total populations of at least two million and one million, respectively.

Many details remain to be finalized, but in KBRA’s view, the general outlines of the program are consistent with sound public sector credit fundamentals and suggest the prospects of well-structured financings.

Click here to view the report.

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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical
Paul Kwiatkoski, Managing Director
+1 (646) 731-2387
pkwiatkoski@kbra.com

Karen Daly, Senior Managing Director
+1 (646) 731-2347
kdaly@kbra.com

William Cox, Global Head of Corporate, Financial, and Government Ratings
+1 (646) 731-2472
wcox@kbra.com

Business Development
William Baneky, Managing Director
+1 (646) 731-2409
bbaneky@kbra.com

Contacts

Analytical
Paul Kwiatkoski, Managing Director
+1 (646) 731-2387
pkwiatkoski@kbra.com

Karen Daly, Senior Managing Director
+1 (646) 731-2347
kdaly@kbra.com

William Cox, Global Head of Corporate, Financial, and Government Ratings
+1 (646) 731-2472
wcox@kbra.com

Business Development
William Baneky, Managing Director
+1 (646) 731-2409
bbaneky@kbra.com