Tuesday, December 8, 2009

State's creditworthiness downgraded

Moody’s Investors Services lowered the state’s ratings on general obligation bonds from A1 to A2 and lowered ratings on related bonds affecting about $24 billion in state debt because of “significant weakening” in state revenues and an inability by Quinn and state lawmakers to significantly narrow an $11.6 billion budget gap.

The move leaves only California with a worse credit rating among states, with California having the lowest at Baa1 a Moody’s spokesman said.

“The downgrades are the result of high structural imbalances and little time to effect modifications to the budget in the current fiscal year, which ends June 30, 2010, as well as evidence of significant weakening in the state's 2009 results,”

Click on the following for more details:  State's creditworthiness downgraded :: CHICAGO SUN-TIMES :: Politics

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