California tax-supported debt balloons to $137B as Moody’s treats unfunded pension liability as bond debt

moodys, pension liability as bond debt, california, unfunded pension liability, combined tax-supported debtMoody’s, a leading credit rating agency, says it has begun treating unfunded pension liabilities like bond debt “giving California a combiners tax-supported debt of $136.9 billion.”

According to Moody’s press release, “Pensions have always had an important place in our analysis of states, but we looked separately at tax-supported bonds and pension funds in our published financial ratios,” says Moody’s analyst Ted Hampton. “Presenting combined debt and pension figures offers a more integrated — and timely — view of states’ total obligations.”

The full report from Moody’s, Combining Debt and Pension Liabilities of U.S. States Enhances Comparability is available online for fee of $550.