...Over the last several months, credit and economic conditions have remained highly challenging for many U.S. public infrastructure enterprises that rely on the tax-exempt municipal market for capital. While some larger and higher-rated issuers have used thei r diversified credit strengths to successfully issue new debt in recent weeks, many other issuers face widened credit spreads, higher borrowing costs and reduced market access. In this report, we discuss the short and long-term credit and economic risks facing U.S. public infrastructure enterprises in the airport, mass transit, port, toll road and power sectors. We conclude that sound debt and treasury management practices, preservation of ample liquidity, and strong governance oversight will be significant determinants of credit quality for these issuers during the coming period of financial adjustment. We further expect that many of t hese issuers will be sustained by their critical role as providers of ess ential...

Report Type: Special Comment
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 Moody's Global Credit Research
Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.