Sandy To Have Minimal Impact On Public Credit Ratings
From Standard & Poor’s Credit Research
Sandy generated insured losses of as much as $20 billion, according to early estimates, and total economic damages of up to $50 billion. The high end of those estimates would make Sandy, in real terms, the third-costliest storm in U.S. history, after hurricanes Katrina in 2005 and Andrew in 1992.
Yet although the storm hit the nation’s most densely populated region, strong advance planning by local, state, and federal authorities helped mitigate its impact.
As such, Sandy will likely have no near-term impact on our ratings on investment-grade infrastructure, transportation, communication and local government issuers, and only a limited impact on re/insurers.
While these efforts may have curtailed the storm’s credit impact in the near term, certain issuers, both public and private, could come under pressure over time, largely because of lost revenues, or delays in reimbursements from insurance companies, federal aid, or other sources. The latter could prove especially significant for some telecom companies whose operations are directly tied to the restoration of power and whose operations are concentrated in areas hit by the storm.
See the full report ($) Sandy Blows Through The Northeast With Only A Minimal Ratings Impact
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