We are sad to watch the events continue to unfold. Our hearts go out to everyone affected by the devastating fires across Los Angeles County.

The wildfires in Los Angeles, among the most devastating natural disasters to strike California, have claimed at least 24 lives1 and left more than 12,300 structures destroyed or severely damaged. With property damages estimated at $20 billion and broader economic losses projected at $135–$150 billion, the impact on homeowners, local governments, insurers, and utility providers is profound. From a municipal credit perspective, understanding the immediate and long-term implications is important, but let’s not forget that Los Angeles County and the City of Los Angeles have a massive tax base. Its resource base extends beyond the affluent affected areas and its diverse revenue base.

Below is a map of the ongoing fires (Fig. 1) and progress of containment (Fig.2) as of 01/13/2025 Time: 11:25am.

More info can be accessed via this link: https://www.fire.ca.gov/incidents/2025.

Figure 1