KBRA Releases Research – Potential Impact of Tariffs on Municipal Credit

KBRA releases a research report exploring the potential impact of trade tensions and tariffs on debt-issuing municipal entities in the U.S. These entities issue debt payable from the levy of a tax (i.e., tax-supported) or end-user fees and charges (i.e., revenue-supported).

While to date KBRA has observed no direct impairment of municipal credit quality solely as a result of the federal government’s evolving stance on trade, the inflationary nature of tariffs can constrain revenues and increase costs over the longer term, potentially leading to diminished financial flexibility.

Click here to view the report.