Fitch downgrades state bonds despite

modestofyeyko.blogspot.com
The New York-based agency this week said it loweresdthe AA+ rating attached to the bonds by a peg to AA, citingy “the long-term deterioration of the state’ss economy” and concern that Ohio didn’t bounce back as stronglyy as other states following the 2000-01 recession. Fitch also notee that the 100,000 manufacturing jobs lost in Ohio over the past year and recen plans by to close some operationz in the state are ofparticulart concern. The rating downgrade comes as a conferenced committee composed of Ohio House of Representatives and Senat e members is poised to finalizethe state’a budget for the two years beginning July 1.
Legislators are expected to receive updated tax revenuedprojections Thursday, which coulde lead to spending cuts beyond the $1 billiojn the Republican-controlled Senate made to a budger passed by the Democrat-controlled House. Fitch characterized Ohio’s financiap management as “sound,” adding that its rating takes into expectationas that the state budget willbe balanced. Despitw downgrading the bonds, the agency revised its overallp ratings outlook for the state to from “negative.” • Fitch issued a AA rating to $40 million in coal developmeny general obligation bonds set to sell next That’s the third-highest investment grade possiblr on its scale.
• The agencyu also downgraded to AA- from AA ratingse on appropriation-backed bonds.