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Wednesday, April 17, 2019

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Louisiana credit rating holds steady with second rating firm

Louisiana credit rating holds steady with second rating firm

BATON ROUGE, La. (AP) — A second national rating agency has decided against downgrading Louisiana's credit rating.

Standard & Poor's Rating Services announced Friday that it is keeping Louisiana at the same credit rating for an upcoming $74 million bond sale to investors, to pay for work on Interstate 49 South projects.

But the rating agency left Louisiana on a negative credit outlook.

Standard & Poor's said Louisiana has made improvements to address its ongoing budget problems, but needs to do more work before it will return to a stable outlook.

The move mirrors action a day earlier from rating agency Moody's Investors Service.

Ratings from the credit agencies help determine interest rates when the state borrows money through bond sales. A drop in credit rating raises interest costs, making it more expensive to borrow.

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