Agencies lower state's credit rating, outlook
Fitch Ratings has downgraded Mississippi's credit rating on $4 billion in outstanding debt, and Moody's Investor Services has lowered the state's credit outlook to negative, moves that could cost taxpayers when the state refinances debt or borrows if not addressed.
Fitch downgraded Mississippi's rating on $4 billion in outstanding general obligation bonds from AA+ to AA, and lowered the state's Long-term Issuer Default Rating from AA+ to AA. It also lowered the rating to AA- on more than $200 million in bonds issued by the Mississippi Development Bank for MDOC projects that were set for sale last month.
Moody's, after issuing a warning in July, lowered the state's credit outlook to "negative," but left its general obligation bond rating at Aa2.
State Treasurer Lynn Fitch, who was critical of the Legislature's borrowing and budgeting this spring, said the moves should come as no surprise after the Moody's July report warning.
Read more: http://www.clarionledger.com/story/news/politics/2016/08/12/moodys-credit-outlook/88641470/
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Moody’s: State’s credit outlook lowered
JACKSON – Moody’s Investor Service has lowered Mississippi’s credit outlook to negative.
“Moody’s report shouldn’t come as a surprise,” Treasurer Lynn Fitch said Friday in response to reports of the change. “Their July report suggested that this would be coming, as did the downgrade Mississippi received from Fitch’s Rating Agency just a few weeks ago. Credit rating downgrades, even small ones, cost taxpayers money and we need to address this seriously and quickly.”
While Mississippi still qualifies for the same bonds, the negative outlook can impact investors’ interest in bonds issued by the state.
In a statement, Gov. Phil Bryant said, “Government spending must be curtailed and our reserves must be grown. In the last four years, Mississippi’s budget has increased 24 percent – a rate five times higher than inflation. That cannot continue.
Read more: http://djournal.com/news/moodys-states-credit-outlook-lowered/
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