NEW YORK--(BUSINESS WIRE)--KBRA releases commentary on the potential implications of the ongoing Russian invasion of Ukraine on credits in U.S. public finance.
Russia’s attack on Ukraine will have many near- and longer-term consequences for the global economy, commodities markets, and inflation—and the impact on the U.S. municipal market will unfold over time. KBRA believes the attack exacerbates issues faced by municipal issuers, including gasoline price spikes, supply-chain disruptions, cybersecurity threats, and economic uncertainty. All these factors may intensify the recent sharp increases in the cost of living. In this commentary, KBRA looks at these issues in detail.
Key Takeaways:
- Rising fuel prices could depress consumer behavior and affect bonds secured by gas taxes and toll revenue.
- Supply chains could be further disrupted, resulting in less throughput at American ports and airports.
- Cyberattacks are a possible expression of Russian foreign policy but would invite a strong U.S. response.
Click here to view the report.
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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
