State's Credit Rating Downgraded

State Treasurer Ron Henson has announced that Standard & Poor's (S&P) has downgraded Louisiana's credit rating one notch from AA to AA-.

"This is not totally unexpected, because the state's budget and supporting revenues continue to be problematic," said Henson. "The state still has a lot of work to do, and this downgrade is Wall Street's recognition of Louisiana's continuing problems."

All three rating agencies have now downgraded Louisiana's credit rating. Moody's Investors Service and Fitch Ratings took similar actions in 2016.

Governor Edwards indicated in a statement released by his office that the action wasn't unexpected.

"The credit rating agencies are echoing what I, and many in the legislature, have said for a long time – structural tax and budget reform is critically important for our state’s future. Much of the state’s negative outlook is due to the fact the state will lose a significant amount of revenue in fiscal year 2019, " Edwards said.

"There is a responsible way that we can reform our tax structure to make it fair and predictable for businesses and also bring in sufficient revenue to support the state services a vast majority of state legislators believes is important to maintain for their constituents. We have to get this work done, and I am committed to working with members of the legislature – Republicans and Democrats – to enact meaningful changes to our state that will, undoubtedly, help us in the future," the Governor added.

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