The New New Orleans

The rebuilding of New Orleans will be one of the largest public works projects in history, and that will mean municipal bonds.

Rated Baa2 by Moody’s Investors Service and BBB+ by Standard & Poor’s — in other words, almost junk — New Orleans already carried what the rating companies call a “high debt burden” and low financial reserves. So it would probably be a good idea for the state to set up a special authority to sell several billion dollars in bonds designed to help rebuild the city.
This is going to take lots of money, and Americans being an impatient lot, probably not as much time as you might think. We’ll know more when the water subsides.

Posted by on September 6th, 2005 at 10:26 am


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