Louisiana’s Credit Outlook Raised from ‘Negative’ to ‘Stable’
Moody’s Investor Service has raised Louisiana’s credit outlook from negative to stable, in a sign that Wall Street is gaining more confidence in the state's economy. Commissioner of Administration Jay Dardenne says this was one of the many reasons the Edwards administration pushed for a stable final budget deal.
"It's what we anticipated would happen as a result of finally stabilizing our situation with the revenue measures that, at long last, have passed," said Dardenne
After a sustained period on the negative watch list, Dardenne says the Moody’s decision is a validation of the governor’s financial policy.
Many legislators were hesitant to approve a tax bill without a short sunset period, to allow the next governor to have a bigger say over state finances, but Dardenne says the final 4.45 percent sales tax plan that lasts until 2025 was the long-term stability the state needed.