Rating Agencies Weigh In Construction Risks

Walker, Susanne
December 2004
Bond Buyer;12/28/2004, Vol. 350 Issue 32038, p6
Trade Publication
The article reports that Moody's Investors Service Inc. has revamped the criteria it uses to analyze construction risk in assigning ratings to the U.S. tax-exempt bond financed capital projects. Moody's incorporates construction risk and strategies used to mitigate the risk into its ratings. Anne Van Praagh, vice president in the public finance group at Moody's, said that the latest criteria are deal specific and sector specific. The degree of government oversight and financial sponsorship of a project can have a direct bearing on the amount of construcfion risk and ultimately the rating level.


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