Louisiana maintains current credit rating, escapes downgrade

Associated Press
BATON ROUGE, La. (AP) – Louisiana has been spared a credit rating downgrade – for now.

National rating agency Moody’s Investors Service announced Friday that it was keeping Louisiana at its current credit rating but moving the state from a stable to “negative” credit outlook.

The decision comes a day after Gov. Bobby Jindal made a personal pitch to the rating agency about the health of Louisiana’s economy and finances. Other state officials also spoke with Moody’s, saying the state was working to correct ongoing budget problems.

A rating downgrade would have made it more expensive to borrow money, and would have been seen as a negative commentary on Jindal’s management of state finances.

Moody’s has raised concerns about short-term patches Jindal and lawmakers use to balance the budget, maneuvers that have created annual shortfalls.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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