LOUISIANA'S BOND RATING RAISED TO 'A+'

  Standard & Poor's Ratings Services today raised the state of Louisiana's general obligation (GO) and appropriation-backed debt ratings from 'A' to 'A+' and 'A-' to 'A' respectively.
Standard and Poor's credit analyst Peter Murphy said , "The upgrade is due to continued strong revenue performance and budget discipline in the aftermath of hurricanes Katrina and Rita...In the past three years, the state has prudently managed surpluses by allocating them to one-time expenditures or to recurring items that are affordable."
 

  The agency went on to say that "the 'A+' GO rating reflects the state's strong financial management, with constitutional and statutory provisions that have established and restricted rainy-day reserves and restrained Louisiana's ability to incur debt." “This is great news for the state of Louisiana and its taxpayers,” Senate President Chaisson said. “It has taken a lot of hard work and dedication on the part of legislators, working with the governor’s office and our financial advisors over the past several years, to be cautious and prudent in the use and investment of state dollars. The hard work has paid off.”
 

  House Speaker Jim Tucker said of the rate adjustment, "I would like to congratulate Appropriations Committee Chairman Jim Fannin, his committee, Senate Finance Chairman Mike Michot and his committee for totally eliminating one-time dollars being spent in the appropriations budget. This action has led to the upgrade by S&P and will save the state millions of dollars over the next 30 years through reduced interest costs."