Louisiana’s Credit Rating Downgraded

Two out of the big three credit rating agencies have downgraded our state's credit rating, meaning Louisiana will pay more for loans. Worse still, it comes just days before the state goes to market on general obligation bonds the state was hoping to use to refinance its debt that could top $600 million. Fitch Ratings dropped Louisiana's credit rating from AA to AA-, and was the second of the big three to do so in just two months after Moody's dropped us down a notch in February.

"This is what happens when you spend more than you take in for seven years running.", said State Treasurer John Kennedy, adding, "The rating agencies are tired of Louisiana's accounting gimmicks and spending practices." Both credit rating agencies did so in spite of personally sitting down with Governor John Bel Edwards as he tried to reassure them that he and lawmakers were working hard to stabilize the state's finances. Edwards released  a statement saying the downgrade "further illustrates the severe budget crisis Governor Jindal's administration left us."

Lawmakers did succeed in raising more that $1.2 billion dollars in taxes during a special session called by Edwards, but even that impressive figure wasn't enough to allay the credit rating agencies fears, and Edwards blames Republicans in congress for balking at his demands for even more taxes, a demand he will make to them again as he calls them into yet another special session to deal with our state's mounting fiscal woes.