Hurricane Katrina Aftermath (and other stuff I find interesting)

UPDATE: A reader had a question about what the effect of these rating downgrades mean. Fitch Ratings (http://www.fitchinv.com/) provides research on the creditor of copmanies, so that people who are considering lending money to those corporations fully understand the risk that they are taking. Fitch ratings range from AAA (exceptionally strong) to D (distressed) and short-term ratings range from F1 (strong) to D (actual or imminent. default). A company who has a AAA long-term rating, is basically like an individual that has good credit. They can borrow money more easily, in larger amounts, and at lower interest rates. By downgrading the credit rating on these bonds for these entities, they will have to pay higher rates of interest to borrow money, and the holders of the outstanding debt would get less for them if they were to try to sell them today. I hope this helps a bit, and post in the comments if ya'll have other questions about this or anything else!

AUSTIN, Texas - Fitch Ratings has downgraded the underlying ratings of the Sewerage and Water Board of New Orleans and the New Orleans Audubon Commission and continue to have the two on negative ratings watch. Sewerage and Water Board's bond ratings are:

-- $200 million sewerage service revenue bonds lowered to 'B' from 'BBB';

-- $137 million sewerage service refunding bond anticipation notes series 2005A lowered to 'B' from 'F2';

-- $46 million water revenue bonds lowered to 'B' from 'BBB';

-- $27 million drainage system bonds lowered to 'B' from 'BBB+' (all outstanding debt of the board, with the exception of the BANs, is insured).

Audubon Commission's bond ratings are:

-- $42 million general obligation aquarium bonds lowered to 'B' from 'BBB' (all outstanding bonds are insured). These actions follow a previous downgrade of these credits on Oct. 6, 2005.

More here