Municipal pension risk improvements and outlook for 2024

Our outlook for pension-related municipal credit risk in 2024 in the context of higher interest rates and ongoing market risks.

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Rising interest rates and stronger contributions have eased pension-related credit risk for many governments. But concentration in equities and other potentially volatile assets remains, and any significant market downturn would add to already elevated budgetary costs. This discussion will cover our outlook for pension as well as OPEB liabilities and costs in 2024.

  • How higher interest rates and contribution discipline have improved many governments' pension risk indicators
  • Credit improvement for cities like Chicago and Milwaukee, and states like Kentucky and New Jersey based on commitment to stronger pension contributions
  • Ongoing concentration in volatile assets and the potential hit to municipal budgets from a market downturn
  • Pockets of credit risk related to retiree healthcare (OPEB) liabilites and costs
  • Speakers keyboard_arrow_down
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    Timothy Blake Managing Director, Public Finance Group Moody's Ratings Bio
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    Thomas Aaron Vice President - Senior Credit Officer Moody's Investors Service Bio
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    David Levett Vice President - Senior Analyst Moody's Ratings Bio