Fitch: Most Florida water, sewer systems should be able to absorb initial costs of Hurricane Ian

The ratings of U.S. public finance issuers affected by Hurricane Ian will largely remain stable, although the credit quality of some issuers with lesser resources and financial flexibility could weaken, says Fitch Ratings. While the full extent of property damage in Florida, Georgia and the Carolinas will not be known for weeks, Fitch is monitoring a range of U.S. public finance credits in the wake of Hurricane Ian, one of the largest storms to hit the United States.

Of the more than 50 Fitch-rated water and sewer utilities in Florida, most should be able to absorb initial storm costs due to generally well-maintained systems, comprehensive emergency planning and robust liquidity, the credit ratings company says. Florida credits in particular often have additional emergency reserves. However, storm surges and flooding can often overwhelm systems resulting in sewer overflows, which could result in water quality issues, and the full impact on utilities is still being assessed.