New Hampshire’s Bitcoin-backed bond gets Moody’s rating
Moody’s assigned a provisional Ba2 rating to New Hampshire’s bond project, placing it below investment grade, as it cited Bitcoin’s volatility.
New Hampshire’s new first-of-its-kind Bitcoin-backed US municipal bond is now one step closer to reality after being given a rating from Moody’s Investors Service on Tuesday.
In a statement on Tuesday, Moody’s assigned New Hampshire’s Bitcoin bond project a provisional Ba2 rating, which falls within the “speculative grade” category and indicates the bonds will have substantial credit risk.
A ratings assessment could be seen as a key step for the proposed bond. Bond ratings offer a way for institutions to assess credit risk and guide decision-making. Some institutional investors have mandates allowing them only to invest in investment-grade assets.