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Louisiana hit with credit rating downgrade, blow to state
Source:
washingtontimes.com
- Feb 26, 2016
BATON ROUGE, La. (AP) - Louisiana’s credit rating was downgraded for the first time in more than a decade Thursday, in response to years of budget instability that have left public colleges and government services wallowing in continued financial uncertainty.
The decision by Moody’s Investors Service to drop the state’s credit rating is another blow to a state teetering on the edge of financial calamity. And it comes as Gov. John Bel Edwards and lawmakers are in a special legislative session grappling with balancing the budget.
The national rating agency dropped the state’s rating by one notch, to Aa3. Moody’s cited the steep drop in oil price’s effect on state tax collections, years “of structural imbalance” in the budget and declining financial reserves. It raised concerns about state retirement debts and the growing cost of Louisiana’s Medicaid program.
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Category: General Business
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