Moody’s Investors Service is revising Louisiana’s credit outlook from negative to stable.
The state’s overall rating remained Aa3.
Bond ratings determine how much it costs Louisiana to borrow money.
The move from moody’s comes after the recent special session raised over $460 million in revenue and set a new tax rate that will be in affect until 2025.
Louisiana Governor John Bel Edwards is praising the move from Moody’s.
“Today’s action by Moody’s validates what we’ve been saying about the need for budget stability,” said Gov. Edwards. “Thanks to the bipartisan compromise achieved during the last special session, Louisiana is no longer on the negative watch list. By working together, for the first time in a long time, Louisiana’s budget will have the kind of stability and predictability we need to bring new business opportunities to our state and grow our economy. As a result, not only are the credit rating agencies taking notice, but we are positioned to generate greater savings for our state that will enable us continue on our path toward prosperity. I’m grateful to every legislator who worked to get the job done and put the people of our state before politics. We look forward to continued good news for Louisiana and hope we will merit a bond upgrade as our overall fiscal situation and economy continue to improve.”
Click here to read the report from Moody’s.