(WAFB) - Louisiana Governor John Bel Edwards released a statement Wednesday on Louisiana's credit rating. Moody's Investor Services did not change the state's credit rating, but did issue a negative outlook. S&P Global Ratings lowered its long-term rating to AA- from AA.
The governor's statement can be read below:
The downgrade in the state's credit rating is similar to that of an individual person's rating, meaning the state will pay a higher interest rate when borrowing money until the ratings improve.
S&P Global Ratings cited the "state's persistently weak revenue collections stemming from prolonged contraction in the oil and gas industry coupled with weak income tax collections (both individual and corporate)."
The full notice from S&P can be read here.
Moody's Investor Services issued a negative outlook for the state, citing the fiscal "cliff." They justify the negative outlook with the following reasons:
- Fiscal cliff looming in 2018 as tax increases roll off
- Uncertain revenue forecasts
- Implementation challenges and legislative reluctance to enact significant changes to the state's revenue structure
The full notice from Moody's can be read here.