Louisiana avoids credit rating drop, stays on negative outlook
BATON ROUGE - Louisiana has escaped a credit rating downgrade.
National rating agency Moody's Investors Service announced Thursday that it is keeping Louisiana at its same credit rating for an upcoming bond sale that will be used to finance work on Interstate 49 South.
The agency, however, left Louisiana on a negative credit outlook, despite requests from Gov. Bobby Jindal's administration to be upgraded to a stable outlook.
Ratings from the credit agencies help determine interest rates. A drop in a state's credit rating raises interest costs, making it more expensive to borrow money.
The rating agencies have raised concerns about the state's long-term finances and patchwork budget maneuvers, which lawmakers reduced in the last legislative session.
Moody's said in its announcement Louisiana still has a "structural budget imbalance and continued budgetary risks."