Post by Logan on Jun 15, 2016 23:30:29 GMT -6
3rd ratings agency downgrades Alaska credit as lawmakers debate budget proposals
JUNEAU — Alaska on Tuesday morning lost its only remaining top-ranked credit rating, with Fitch Ratings downgrading the state one notch from AAA to AA+.
The announcement from Fitch occurred after the two other big ratings agencies, Moody's and S&P, gave the state similar downgrades earlier this year, and it came as House lawmakers held a hearing to critique a deficit reduction proposal that could fix the state's budget problems.
Fitch's downgrade, the agency said in its own report, reflects Alaska's substantial budget deficit combined with "modest reform efforts" taken by lawmakers to match state spending with its "stressed" revenue structure.
Alaska has long depended on taxes and royalties from oil production to pay for government services, and the state's current multibillion-dollar deficit stems from the recent crash in oil prices. Fitch described the rating outlook as "negative."
Read more: www.adn.com/politics/2016/06/14/3rd-ratings-agency-downgrades-alaska-credit-as-lawmakers-debate-budget-proposals/
JUNEAU — Alaska on Tuesday morning lost its only remaining top-ranked credit rating, with Fitch Ratings downgrading the state one notch from AAA to AA+.
The announcement from Fitch occurred after the two other big ratings agencies, Moody's and S&P, gave the state similar downgrades earlier this year, and it came as House lawmakers held a hearing to critique a deficit reduction proposal that could fix the state's budget problems.
Fitch's downgrade, the agency said in its own report, reflects Alaska's substantial budget deficit combined with "modest reform efforts" taken by lawmakers to match state spending with its "stressed" revenue structure.
Alaska has long depended on taxes and royalties from oil production to pay for government services, and the state's current multibillion-dollar deficit stems from the recent crash in oil prices. Fitch described the rating outlook as "negative."
Read more: www.adn.com/politics/2016/06/14/3rd-ratings-agency-downgrades-alaska-credit-as-lawmakers-debate-budget-proposals/