Moody’s has issued a “credit negative” warning for sponsors ofmultiemployer pension plans, in lightof the $10 billion increase in the Pension Benefit Guaranty Corps.’multiemployer insurance program’s projected deficit.

While not a universal downgrade, the warning suggests that theinevitability of yet further increases in sponsors’ premiums toPBGC will affect the credit worthinessof some companies.

In PBGC's fiscal year 2015 annualreport, released in November, PBGC said themultiemployer insurance program, which partially backs the pensionpromises to roughly 10 million participants in collectivelybargained multiemployer pension programs, now has a deficit of$52.3 billion.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.