Falling Crude Oil Prices and Muni Credit: The Loser and Neutral Credit Impacts
February 22, 2015 at 07:30 AM EST
West Texas Intermediate oil contracts closed at ~$55bbl on 12/15/2014. Soon after the oil swoon, Moody’s placed Alaska on negative credit outlook without revising the state’s AAA credit rating. We agree with Moody’s assessment of Alaska’s outlook and credit quality. Alaska’s budget and balance...