S&P Says Flooding Events for California Cities and Counties May Result in Credit Risks

California’s high rainfall in 2023 is continuing into 2024 but has yet to have a material effect on credit quality for cities and counties rated by S&P Global Ratings, however the longer-term effects on issuers could be more significant, the ratings agency said.

S&P Global Ratings said in a new report that maintaining high levels of reserves and liquidity is one way issuers can navigate the short-term effects of extreme weather events, in particular as FEMA reimbursement, if approved, can take months or even a year to arrive.

The report does not constitute a rating action.

S&P Global Ratings continues to monitor the effects of extreme weather events on the credit quality of California cities and counties by evaluating infrastructure, risk management and finances on a case-by-case basis.

Topics California Flood