Moody’s Combines Debt and Pensions to Analyze States
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Moody’s Investors Service provided a combined measurement of debt and pension liabilities for the first time to analyze U.S. states’ creditworthiness after “rapid” growth of their unfunded retirement obligations.
The joint figures released today make it easier to compare fixed costs among states and with corporate-bond issuers, Moody’s said. The company previously included pension liabilities separately in evaluating states. It revised municipal ratings in April to make them more compatible with corporates.