ABSTRACT
Although frequently thought of as more subjective and less quantifiable than other rating factors, an evaluation of a municipal entity's administrative factors is critical to Moody's analysis of municipal credit quality. This chapter provides the answers to some of the most frequently asked questions concerning the analysis of administrative and governmental factors. Since providing even the most basic services can be costly, Moody's analysts also focus on the powers and abilities of governmental entities to draw on the economic resources available in the region within which they operate, and any associate legal or statutory constraints. Intergovernmental relationships must also be assessed, particularly when services are provided to a common group of tax or rate payers. In some cases, a given entity may be responsible for providing services in tandem with other levels of government. At one extreme are relatively independent units that provide all local government services that in other places are traditionally provided by multiple layers of government.
