SALEM, Ore. (AP) – Moody’s Investors Service says Gov. Kate Brown’s drought declarations in 23 Oregon counties should help maintain credit ratings for local governments.
In its weekly credit outlook, Moody’s says the drought can have a negative impact on credit ratings, particularly in agricultural communities. But the agency says Brown’s declarations open up access to emergency water use permits and the temporary transfer of water rights.
Moody’s says the various water management tools, along with a small amount of additional funding, should sufficiently mitigate the credit risk posed by low-water levels. Credit ratings in the affected counties are not expected to drop unless drought conditions worsen.
Nearly two-thirds of Oregon counties are now under a formal drought declaration, the most since 1992.
