ADVERTISEMENT

Ratings Agency Downgrades PA's $10.9-Billion Debt



Credit agency Fitch Ratings is downgrading Pennsylvania's $10.9-billion in outstanding general obligation debt because it says policymakers haven't adequately addressed rising costs that are outpacing tax collections
 
The downgrade, dated Tuesday, comes three years after Fitch put Pennsylvania on a negative outlook. The downgrade takes Pennsylvania from AA plus to AA and puts it in the bottom one-third of states Fitch rates.
 
Fitch cites Pennsylvania's failure to boost funding for public employee pension obligations and its lack of a cash reserve. The ratings agency says that signals an inability or unwillingness on the part of political leaders to make difficult fiscal decisions.
 
Governor Tom Corbett's proposal to cut future pension benefits of current employees by $12-billion over 30 years collapsed in the Legislature. The current budget is draining the state's cash reserve and cutting business taxes.


Filed Under :  
Topics : Business_FinanceLaborSocial Issues
Social :
Locations : Pennsylvania
People : Tom Corbett
A   A   A
 
The 11th Hour - Guests & Topics April 21st-25th 2014
Monday April 21st James B. Huntington, PH.D Choosing a Lasting Career The Job-by-Job Outlook for Work's New Age Work's New Age Blog Tuesday April 22nd David Ickes Wednesday April 23rd Barry Ickes Thursday April...
Read More
Dial N Deal - April 18th 2014
GPX Karaoke Party Machine with CD and G&CD player, professional microphone and other features, $79.99 new, newver used, new-in-box - $50 Gibson Imperial Dinnerware Set 16-piece, porcelain, never used, new-in-box $25 Samuel, Altoona...
Read More
The 11th Hour - Guests & Topics April 11th-18th 2014
Monday April 14th Dr. Gabe Mirkin Dr. Mirkin.com Dr. Gabe Mirkin on Fitness & Health Facebook page Dr. Mirkin on Twitter Tuesday April 15th David Ickes Wednesday April 16th Thursday April 17th Adam Conrad - Real...
Read More