Standard & Poor's Rating Service is saying it will lower the state of Pennsylvania's credit rating in the next few months if state's leadership doesn't get its act together, pension-wise.
In a report to investors, S&P analyst John Sugden warns that if Pennsylvania's political leaders don't implement "meaningful pension reform," the agency will lower ratings for the $545 million the state plans to borrow in general obligation bonds, and the $293 million it has planned for bond refunding. S&P currently places a AA ("Very Strong") rating on Pennsylvania's debt.
The latest threat comes on the heals of a report issued in 2012, when the agency gave Pennsylvania two years to bring its debt obligations in balance with revenues. The threat of a downgrade was made again in April of 2013.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
