Wednesday, August 07, 2002

Rating agency drops Ky. from credit warning list

By The Associated Press

        FRANKFORT, Ky. - One of two major credit rating agencies removed Kentucky from its “watch list” for a potential downgrade Tuesday, citing the relatively smooth operation of government without a budget.

        Moody's Investor Service said, however, that Kentucky's overall credit is still in jeopardy.

        “Given the budgetary stress the commonwealth faces due to continued weak revenue collections, and the uncertainty relative to the strength and timing of its economic rebound, the credit outlook for the commonwealth remains negative,” Moody's said in its report.

        Standard & Poor's rating agency continues to have Kentucky on its watch list for possible downgrade and an overall negative outlook.

        Credit ratings can increase the amount of interest the state has to pay on its debt, even though there have been no bonds sold since the fiscal year began July 1.

        The General Assembly failed to pass a budget during its 60-day session or an eight-day special session, leaving the state to open a fiscal year for the first time without a legislatively enacted spending plan.

        Gov. Paul Patton imposed a “spending plan” that follows budgets approved by the House and Senate. A lawsuit to settle the constitutionality of the arrangement is slowly making its way to court, with no decision expected until October.


Anti-drug program to get ax
Lemmie wants discipline studied
Twitty sticks by account
Festival seating back for Springsteen concert
Advocate sees helpline need filled
Black fraternity to skip city
Bond-rich Reading to seek tax increase
Deerfield residents want five trustees
Forest Park may curb street hoops
Marchers lend support to war-ravaged Israel
Obituary: Edmund Graber was business executive
Report says mental care is lacking
State seeks plan for Sabis school
Tristate A.M. report
Trustee checked for conflict
Woman, 82, raped at hospital
BRONSON: Ron Twitty
HOWARD: Some Good News
KORTE: City Hall
Fox won't seek county job
More hotel movies targeted
Ohio officials criticize drug-clinic promotion
Carjacker terrorizes couple
Kentucky News Briefs
- Rating agency drops Ky. from credit warning list
Security breach shuts down terminal