Fitch downgrades Minnesota's credit rating

Fitch downgrades Minnesota's credit rating
Posted by: Baird Helgeson under Funding, Gov. Mark Dayton, State budgets Updated: July 7, 2011 - 3:21 PM

Years of short-term budget solutions cost Minnesota its top credit rating from a top financial analyst.

Fitch Rating downgraded Minnesota’s bond rating Thursday, which means it will cost the state more to borrow money for road projects and buildings of statewide significance, said Minnesota Management & Budget Commissioner Jim Schowalter.

The change will also hike interest rates for cities, counties and schools.

“This downgrade is the result of several budgets in which the state didn’t act to address its structural deficit," Schowalter said in a news release. "For years Minnesota has prided itself on having constructive, responsive public solutions but in the eyes of the marketplace, we are slipping.”

Fitch downgraded Minnesota's bond rating from AAA to AA+.
Standard and Poors, another rating agency, continues its top rating for Minnesota. Moody's Investors Service rates the state as an AA1.

The last time the state was downgraded it took fifteen years to regain the highest rating, Schowalter said.

“This downgrade is a sad statement for those who have worked to deliver quality public services and took our high ratings extremely seriously," he said. "The best we can do now is to resolve the budget debate in a timely fashion and in a manner that addresses our long-term financial stability."



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jock1mnJul 7, 113:48 pm

Smooth move! Not only are we losing money but now its going to cost us more. Maybe we should use your pay to help balance the budget - now that would be true leadership.
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JennLuJul 7, 113:55 pm

Wasn't there a story that was posted a few weeks ago that said the state's credit rating was likely to be unaffected as long as the state could continue paying on its debt? What's changed?
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rlwr51Jul 7, 114:13 pm

Gee thanks Tim..... And now the Republicans refuse to tax to pay back what he borrowed.
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swschradJul 7, 114:26 pm

huh?? -- wait a minute, Wall Street ratings firms start docking you for slapdash budgets full of sneaky-Pete tricks, line items for "magic money" delivered by unicorns, and fingerpointing when the cookie jar is empty? who could have guessed that?!?
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mnforlifeJul 7, 116:32 pm

Again - thank you, GOP! After spending your regular legislative session working to pass a rights-endangering social agenda, as you planned, your shutdown is further harming the state and will end up costing us more as we try to pay back on your supremely failed 'borrow ahead' strategy. COntinue to serve Grover Norquist, an unelected citizen that you have signed an oath to, thus revealing your true master, while lining your pockets with the income you receive from your corporate benefactors. Your class warfare on the middle and lower classes does not go unnoticed, and the harm you bring to the state will be impacting even those non-rich who blindly support you for years to come. Great job!
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cricketedJul 7, 118:36 pm

How did these people move Sooo far to the right ?Clinton was a centrist and the republicans hated him for it . so they had to differentiate them selves from him and they all moved further right with the help of Rush Limbaugh and other A.M radio host,s Righties for the good of your country please stop listening to right wing radio! Oh and did you see whose tabloid got busted for tapping peoples voice mail in England? non other than Rupert Murdoch ! this is the only nation on earth where he has a news channel everywhere else it,s called tabloid
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furguson11Jul 7, 119:58 pm

Thanks Tim. And the current GOP offered to borrow more money from schools to balance the budget.