Saturday, July 16, 2011

Ohio's credit outlook upgraded

This is such good news for Ohio and it's a testament to the success of Gov. John Kasich's new budget which he balanced without raising taxes.

Article in Cleveland Plain Dealer:

Standard & Poor's Ratings Services upgraded Ohio's credit outlook on Friday, a forecast that bodes well for the economically challenged state's future borrowing needs.

S&P kept the state's rating at AA+, but improved the outlook from negative to stable.

The change means S&P expects Ohio to be a better credit risk going forward, said Kasich spokesman Rob Nichols, and if the state's rating is eventually upgraded to AAA, the highest rating, that should mean lower costs of borrowing and a savings to taxpayers.

The article also includes a quote from Kasich:

"This is great news for Ohio," the governor said in a prepared statement. "Standard & Poor's decision to improve Ohio's credit outlook for the first time in two years is a real show of confidence in the positive things we're doing. It's encouraging that our accomplishments are beginning to move the needle like this and be noticed by independent financial analysts like those at Standard & Poor's."

This is also a repudiation of our local paper's criticism of the governor's policies. In the linked post is this from Editor David Kushma:

I can’t believe that the Ohio the governor and Republican lawmakers envision is a state where most of us want to live. But I could be wrong.

Apparently, it's not just the editors of the Wall Street Journal - and a majority of Ohioans - who think Ohio is heading back to the right path.

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