Louisiana’s credit rating has taken another hit.
Fitch Ratings downgraded the state’s credit rating a notch, according to State Treasurer John Kennedy. Moody’s Investors Service downgraded Louisiana’s credit rating earlier this year.
Fitch’s action comes just days before Louisiana goes to market on up to $600 million in general obligation bonds.
“This is what happens when you spend more than you take in for seven years running. It’s disappointing but not surprising,” said Treasurer Kennedy. “The rating agencies are tired of Louisiana’s accounting gimmicks and spending practices.”
Governor John Bel Edwards said this news further illustrates the severity of the budget crisis left by the Jindal administration.
“We had hoped the special legislative session would have produced the results we needed to avoid another credit downgrade,” Edwards said. “Unfortunately, some members of the legislature refused to work with me to stabilize our budget. We will continue working to address the budget challenges before us, and I am hopeful that during the next special session the legislature will come together in the spirit of cooperation to restore prosperity to our state.”