WV's Floundering Economy Leads to Downgraded Bond Ratings
The State Journal - West Virginia Gov. Earl Ray Tomblin said he was disappointed but not surprised the state's failing economy has led to a downgrading of West Virginia's bond ratings. Read
"Throughout my years of public service, I've worked hard to create a strong West Virginia by improving the state's business climate, addressing our long-term liabilities and creating one of the strongest rainy day Funds in the country," Tomblin said in a news release. "Over the past four decades, we've made significant progress. Today's announcement by Standard & Poor's is disappointing, however it is not entirely unexpected as other states whose economies are largely dependent on the energy sector have experienced similar actions."
Standard & Poor's announced Thursday, April 21 that it was lowering the state's overall bond rating from AA to AA- because of continuing and worsening budget problems.
"Standard & Poor's Ratings Services lowered its rating to 'AA-' from 'AA' on West Virginia's general obligation debt," officials for the rating service said in their report. "The downward revision reflects our view of structural changes to the state's economy due to weakness in the energy sector, specifically coal, which in our view is a long-term challenge rather than a cyclical setback.