Monday, July 18, 2011

Missouri's AAA credit rating at risk?

Missouri Watchdog has an interesting article by Brian Hook in which I give my two bits on the possible effects of Federal default/shutdown on Missouri's credit rating. Missouri, as one of a few states with AAA ratings from all three credit agencies, should have no problem handling any problems that arise if the Federal government reduces intergovernmental transfers. Even so, it appears that Moody's will be reviewing the state's credit rating. Missouri's excellent credit rating is hard-won through years of responsible fiscal management (thank goodness for the Hancock amendment), and it's a shame that the profligacy of others puts that at risk.