NEW YORK–(BUSINESS WIRE)–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.
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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.
Paul Kwiatkoski, Managing Director
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William Baneky, Managing Director
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