Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login

Site Notices
Posted: 6/15/2009 1:10:18 PM EST

Moody's Investors Service lowered its ratings on the state of Ohio, citing economic deterioration and declining financial flexibility for the state's government as its economy has consistently underperformed the nation during the past decade because of the state's heightened manufacturing exposure.

The action follows recent downgrades by Moody's of both Nevada and California's ratings.

The ratings firm lowered its general-obligation bond rating by one notch to Aa2, or two steps below Aaa, while revising its outlook to stable. The action affects $9.6 billion of debt, including $6.8 billion of outstanding general obligation bonds.

Moody's said that Ohio job growth in several industries, including education and health services, hasn't been nearly sufficient to offset the dramatic deterioration in manufacturing. Specifically, Moody's said goods-producing employment has declined by 25% since 1999, while employment in services grew 2.9%.

In addition, Moody's said the bankruptcies of Chrysler LLC and General Motors Corp. (GMGMQ) have exacerbated the near-term economic pressure Ohio will face and will extend the trend of underperformance compared with the rest of the U.S.

The ratings firm also pointed to the state's unemployment rate, a preliminary 10.2% in April compared with the nation's 8.9%, which it said signals further deterioration in income.

In May, Moody's cut its ratings on the state of Nevada's debt one notch, reflecting the effect of an unexpected downturn in gaming on the state's gambling and resort industries centered in Las Vegas. California - the nation's largest issuer of state debt - saw its general obligation bonds downgraded in March as the state continues to deal with multibillion-dollar deficits.

-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com
Link Posted: 6/15/2009 1:48:42 PM EST

There goes the neighborhood.
Link Posted: 6/15/2009 1:50:00 PM EST
[Last Edit: 6/28/2009 2:19:51 PM EST by molotov357]
Link Posted: 6/15/2009 1:51:38 PM EST
It's sad we've lowered our credit rating , HOWEVER we have around a billion dollars in the rainy day account , and from my understanding it's going to be relatively easy to cut the budget.
Link Posted: 6/15/2009 2:02:48 PM EST
Wonder what their Beacon Score is?

Maybe they can hire one of those "credit fix-it" companies on late-night TV?
Link Posted: 6/15/2009 2:04:13 PM EST
Originally Posted By molotov357:
Isn't the entire US about to lose its AAA rating?

Is there a site to show what the credit ratings for each country is?
Top Top