Moody’s: Florida, Texas emerged from 2017 hurricane season with credit quality intact

The bond rating agency reported that both states maintained strong credit quality despite damage done by hurricanes Harvey and Irma

Miami /
Feb.February 10, 2018 11:15 AM

Hurricane Irma (Credit: National Oceanic and Atmospheric Administration)

Florida and Texas have the nation’s greatest exposure to climate change, but both states got through the 2017 hurricane season with strong credit quality intact, Moody’s Investor Services reported.

Rising sea levels and increases in the frequency and intensity of storms threaten Florida and Texas more than the rest of the 50 states.

But Moody’s, a New York-based bond rating agency, also reported that “both states weathered hurricanes Irma and Harvey without an effect on their credit quality.”

Economic disruption, measured as lost output, accounted for 20 percent of the total damage caused by Hurricane Irma, compared to 10 percent of the total damage Hurricane Harvey caused, according to Moody’s.

Florida has the greatest economic exposure to flooding, coastal storm surges and wind damage. Almost 77 percent of Florida’s gross domestic product (GDP), or total economic output, is concentrated in coastal counties, compared to 31 percent in Texas.

But the state governments of both Florida and Texas have ample liquid reserves to offset temporary slowdowns in collections of tax revenue after hurricanes, the bond rating agency reported.

Florida and Texas have “growing and increasingly diverse economies that have usually bounced back quickly after storm events,” Moody’s reported. Among other sources of economic resiliency, Florida and Texas “dominate coverage by the National Flood Insurance Program.” The program, however, “requires periodic reauthorization and has been caught up in the federal budget debate.” – Mike Seemuth


Related Articles

arrow_forward_ios
From left: Sotheby’s Daniel de la Vega and Reagan Jefferies with Brevard County
One Sotheby’s picks up Brevard County brokerage
One Sotheby’s picks up Brevard County brokerage
10181 US Highway 98 West and 39 Sandy Dunes Circle (LoopNet)
Florida Panhandle estate sold for $25M
Florida Panhandle estate sold for $25M
Netscape co-founder Jim Clark and 2000 South Ocean Boulevard in Manalapan (Getty, Sotheby's)
Manalapan compound poised to sell for Florida-record $175M
Manalapan compound poised to sell for Florida-record $175M
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Hassan Whiteside and 528 Lakeview Court in Miami Beach (Getty, Joe Azar/Compass)
NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
NBA’s Hassan Whiteside lists Miami home for $23M, triple what he paid for it
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
(ONE Sotheby's Realty)
Former mayor George “Bud” Scholl’s waterfront home hits market for $13.9M
Former mayor George “Bud” Scholl’s waterfront home hits market for $13.9M
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...