What do credit rating agencies say about the funding of the OPEB liability?
Credit rating agencies have stated that they will consider OPEB funding status in their evaluations of government financial condition. It is possible that bond ratings may suffer for those governments with large and/or mounting liabilities and no plan to pay for these future costs. This may be particularly true as certain governments move forward with OPEB strategies while others do not. [2] The extent to which a local government’s OPEB funded status affects its overall credit rating may depend on a number of factors, including the issuer’s current rating and a comprehensive review of the issuer’s finances.
