Moody's upgrades outlook on U.S. states


Moody's has lifted its collective outlook on U.S. states to stable from negative, the first time the ratings agency has improved its view of states since the financial crisis.

"Improving labor and housing markets have boosted consumer confidence, and strong stock-market performance has further improved state revenues," Moody's analyst Baye Larsen explained.

Credit quality is high, with 30 states holding the two highest ratings, AAA or or Aa1. Due to its massive pension gap, Illinois has the lowest rating among states, A3.

The local government outlook remains negative. (PR)

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Comments (3)
  • Tschurin
    , contributor
    Comments (381) | Send Message
     
    This summary begs the question of why the state outlook improved but the cities' outlook has remained negative. Moody's apparently cites the improved housing market as a primary factor, yet property taxes in general go to localities, not to the states.
    21 Aug 2013, 05:14 AM Reply Like
  • Tschurin
    , contributor
    Comments (381) | Send Message
     
    And yes, there is often a delay before rising property values are reflected in tax assessments, but you would think generally rising house prices would still be reflected in the cities' "Outlook."
    21 Aug 2013, 05:29 AM Reply Like
  • user92718
    , contributor
    Comments (166) | Send Message
     
    I've been holding both muni ETFS (muni, HYD) and some municipal mutual funds and Iam down 8%.
    It's my first time investing in municipal bonds/funds and Iam so worrying!!, do you advise me to hold tight or sell?
    Iam willing to wait up tp three years.
    I look forward to hear back from you!!
    3 Sep 2013, 08:53 PM Reply Like
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