KBRA Releases Research – Coronavirus (COVID 19): CARES Act: For States, Not All It Seems

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a report which examines the limitations under the Coronavirus Relief Fund (CRF).

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed on March 27, 2020, allocates $150 billion in aid to states, territories, and certain local governments as part of the Coronavirus Relief Fund.

The relief fund is designed to cover expenses directly incurred by state and local governments to deal with the coronavirus (COVID-19) public health crisis, but not indirect expenses or secondary economic effects such as lost revenues—which far eclipses expenditure associated with the pandemic.

The states hardest hit by the pandemic will have substantial direct costs. However, at the program’s expiration on December 31, 2020, it is possible that some states will need to make refunds to the U.S. Treasury because allowable expenditures, as defined under the CRF, will be less than the original allocation. Any broader support for state and local governments will have to come from subsequent legislation.

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

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

Patricia McGuigan, Senior Director
+1 (646) 731-3350
pmcguigan@kbra.com

Peter Scherer, Associate
+1 (646) 731-2325
pscherer@kbra.com

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

Business Development

Bill Baneky, Managing Director
+1 (646) 731-2409
bbankey@kbra.com

James Kissane, Senior Director
+1 (213) 806-0026
jkissane@kbra.com

Contacts

Analytical

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

Patricia McGuigan, Senior Director
+1 (646) 731-3350
pmcguigan@kbra.com

Peter Scherer, Associate
+1 (646) 731-2325
pscherer@kbra.com

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

Business Development

Bill Baneky, Managing Director
+1 (646) 731-2409
bbankey@kbra.com

James Kissane, Senior Director
+1 (213) 806-0026
jkissane@kbra.com