Cyber Risk in U.S. Water Systems: A Municipal Credit Perspective

Cybersecurity Emerges as a Key Municipal Credit Risk

Morgan Stanley’s Municipals Team examines how recent cyberattacks on U.S. water systems are increasing operational and credit risks for essential-service providers.

• Smaller utilities may face greater pressure due to limited cybersecurity resources and higher required capital spending.
• Strong preparedness, including backup systems, governance, insurance and cybersecurity controls, can improve resilience.
• Cyber risk becomes a credit issue when attacks cause sustained disruption to operations, cash flow or essential services.

Explore the full report to understand how cybersecurity preparedness is increasingly shaping municipal credit analysis.