Ratings agencies: Government shutdowns not a 'rating driver'
Major credit rating agencies say that state government shutdowns in isolation don’t usually lead to bond rating downgrades, complicating a narrative that’s been coming from Vermont’s state treasurer and Democratic lawmakers for weeks.
As an impasse over property taxes now encroaches upon the July 1 deadline for a new spending package, alarm is growing over the shutdown and the ramifications it could have on state agencies, employees and Vermonters who rely on public services.
The state’s sterling credit rating has also been a central point of concern on both sides of the political divide. State Treasurer Beth Pearce, a Democrat, has said the rating will be in serious jeopardy if the state reaches July 1 without a budget in place.
A lower credit rating would make it more expensive for Vermont to borrow money, exacerbating the economic pressures at the heart of the current political dispute.
Read more: https://vtdigger.org/2018/06/18/ratings-agencies-say-shutdown-not-necessarily-mean-downgrade/