All through the pandemic, U.S. municipal utilities have shown incredible fiscal resilience, prompting many credit rating agencies to reaffirm their positive outlook for this sector as we move into 2022.
This resilience is primarily attributed to a few key factors, such as continued planned rate hikes, deferred maintenance, and high recovery rates, which have sustained throughout COVID-19, contrary to original expectations. These trends have helped U.S. municipal utilities, especially water and sewer, build strong cash balances to address future challenges. However, aging infrastructure and inflationary pressures can present some potential challenges for these utilities.
In this article, we will take a closer look at some key indicators to assess the outlook for many municipal utilities in the United States.
municipalbonds.com
by Jayden Sangha
Jan 24, 2022