Third major ratings agency downgrades Alaska credit

first_imgEconomy | Energy & Mining | State GovernmentThird major ratings agency downgrades Alaska creditJune 14, 2016 by Rachel Waldholz, Alaska’s Energy Desk Share:Credit ratings agencies have cited Alaska’s $3.8 billion budget deficit and ongoing legislative gridlock in downgrading the state’s credit. (Photo by Rachel Waldholz/Alaska’s Energy Desk)The third major credit ratings agency has weighed in on Alaska’s fiscal health.New York-based Fitch Ratings announced Tuesday morning that it is lowering the state’s long term credit rating from AAA — its highest rating — to AA+, citing the state’s massive budget gap.It follows downgrades earlier this year from the other two major ratings agencies, Standard and Poor’s and Moody’s Investors Service.The credit downgrades will make it more expensive for the state to borrow money in the future.All three agencies have said they expect Alaska’s rating to slip lower if oil prices remain low and the state continues to rely solely on savings to cover the deficit.Share this story:last_img

Leave a Reply

Your email address will not be published. Required fields are marked *