Thursday, November 21, 2013

liquid assets liabilities

Just more detail on the already reported on new borrowing by the Pittsburgh Water and Sewer Authority.   Moody's thinks the near term is stable enough, but their full outlook report has a lot of sobering details. Their concerns include "narrow debt service coverage levels and liquidity position, supported by weak legal provisions and a highly leveraged system, with additional debt expected in the future. The rating also incorporates the authority's exposure to a major regional state and federal consent order,....".

So basically a public authority with way above average debt levels is looking at major capital needs in the future that seemingly will have to be covered with massive new borrowing into the future... new debt that will almost certainly force big new rate increases. Again, from a development perspective, and possibly from a sheer tax/cost impact on city residents, this all is more impactful than most anything doing on the 5th floor. 

The water gave me a lot of debt.


Anonymous The Wiz said...

CNBC today repeatedly showed a segment on Baltimore's failing water system. They are featuring different cities all week and talking about how bad the financial issues are. Said there is a link on their website.

Thursday, November 21, 2013 7:26:00 PM  

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