Skip to main content

Pennsylvania's Bond Rating Downgraded

Moodys logo blueNext week, Pennsylvania plans to hold a $363.6 million sale to re-fund general-obligation bonds.  That plan continues to hold even after Moody's downgraded the state's credit rating yesterday from Aa1 to Aa2 and rated the bond sale at Aa2. Moody's outlook on Pennsylvania also changed from "stable" to "negative" based on the state's weakened financial position and slow movement towards growth in the state economy.  Pennsylvania has been rated Aa1 since 2010, but now joins 16 other states at Aa2 or below.

Moody's said its decision was based on “Large and growing pension liabilities and moderate economic growth will challenge the return to structural balance, contributing to a protracted financial recovery.”  Financial reports show that Pennsylvania's retirement systems do not have enough money to meet projected liabilities.

Today, Moody's "put Pennsylvania's higher education system on review for a possible downgrade" due to worries about lower enrollment and the state's credit rating.  As of today, the system has an Aa2 rating.

So what does all this mean? Lower ratings seem to lead to higher borrowing costs, but according to the Inquirer, "investors' strong demand for state and local government bonds has kept yields cheap even for lower-rated issuers in recent years." In other words, analysts say it may be a while before Pennsylvania feels the effects of this change.


Popular posts from this blog

Are You Registered to Vote?

As we get closer to the November elections, Google searches on how to register are increasing, which begs the question: Are you registered? Do you know how to sign up?

Pennsylvania and many other states require voter registration before Election Day - in Pennsylvania's case, voters must be registered one month ahead of time.  So if you recently moved, just turned 18, haven't voted in a while, or never registered before, the time to sign up is now.

PathWays PA has partnered with Rock the Vote to offer voter registration through this blog! You can fill out the form below to register or to make sure that you are registered.

Please take the time to register, and also consider pledging to vote in support of your economic values at!

PS - click here to share a voter registration link on Facebook, Twitter, or Google+!

Register Now for National Audio Conferences on Job Scheduling

From our friends at CLASP Register now for three national audio conferences on job scheduling! Job schedules matter in many ways. For all workers, it helps when an employer is responsive to a request for a needed schedule change. And far too many workers have volatile and potentially destabilizing schedules. If you don't know when you are supposed to be at work until the last minute, how do you arrange child care or transportation? If your total hours fluctuate from week to week, how do you budget for rent and food? To address these issues and emerging policy opportunities, the Center for Law and Social Policy (CLASP) is hosting and sponsoring three Job Schedules Matter audio conferences.

The conferences, which are co-sponsored by the Center for Popular Democracy and the National Women's Law Center, will include comments from U.S. Senator Elizabeth Warren and Congressman George Miller on why they introduced the Schedules that Work Act. You'll also hear from workers about th…

Register for FRAC's Federal Nutrition Program Conference Calls

The Food Research and Action Center (FRAC) will host two public conference calls in October. Information on the calls follows below:
Breakfast Matters - Effective Messaging: Getting Positive Press in your Community

Thursday October 11, 3 – 4 pm ET
Click here to register.
Learn tips from a national communications firm about how to place your stories with local media and receive positive press coverage for your program.

Presenters: * Jon Dickl, School Nutrition Director, Knox County Schools, Tennessee
* Amber LaCroix, BRG Communications

Afterschool Meals Matter - Community Partnerships
Wednesday, October 17, at 1:00 pm EST

Click here to register.
Learn how you can connect with a myriad of community partners, from parent groups to corporate volunteer programs, who can offer you and your program their time, energy, and support. Community partners can assist you with meal preparation, programming, outreach to increase your participation, and ultimately to help build up community support and in…