Credit Ratings Higher in Areas with Fracking?

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From the Fort Mill Times:
Kroll Bond Rating Agency (KBRA) releases report on the potential credit implications of fracking. The report is an update to KBRA’s report of January 27, 2012 – “Potential Impact of Natural Gas Fracking on Municipal Bond Issuers.” This update examines the proposed high-volume hydraulic fracking of the Marcellus and Utica Shale Basins, located below New York, Ohio, Pennsylvania, and West Virginia, as it relates to state and local credit risk.
KBRA views the ongoing development of the Marcellus and Utica shale formations as having the potential to create a significant number of new jobs (direct and indirect), as well as improving economic conditions and tax revenues for the state and local governments that lie above the boundaries of the Basins. These improvements could support higher credit ratings for issuers in the affected areas, as they reflect key credit characteristics assessed by KBRA in its rating review for state and local governments.
Read the rest here. 

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