Moody's Maintains S.C's AAA Credit Rating
Friday, August 5, 2011
(Columbia, SC) – State Treasurer Curtis Loftis issued the following statement in response to the action taken by credit rating agency Moody’s, who has reaffirmed South Carolina’s AAA credit rating but added a negative outlook similar to that given to the federal government.
“South Carolina has AAA credit for a reason,” Treasurer Loftis said. “We live within our means and are constantly guided by sound financial principles. The negative outlook for the federal government has spilled over to the states and is a wake-up call that government must not spend more than it has. The State Treasurer’s Office is monitoring this situation and is in constant contact with the rating agencies.”
South Carolina’s AAA credit rating means it costs less to borrow money for things taxpayers depend on like schools, roads and bridges.
Moody’s Investors Service will be conducting a credit review of select states including South Carolina within the next 90 days. According to Moody’s, in order for South Carolina to earn a stable outlook, the state must maintain credit quality higher than that of the federal government in the event the U. S. government credit would be downgraded.
“The bottom line is simple: the action by Congress and the President causes uncertainty in the business community,” Treasurer Loftis said. “We must demand fiscal conservatism and transparency from Washington. South Carolina is doing its part and I ask D. C. to do the same.”
South Carolina, along with Maryland, New Mexico, Tennessee and the Commonwealth of Virginia, are the five states Moody's confirmed AAA with negative outlooks with ratings indirectly linked to the U. S. government. Those five states have a combined $24 billion of outstanding debt.