Governor Walker called the latest downgrade concerning but not surprising following legislatures convening their second special session this year without resolution on a fiscal plan.
JUNEAU, Alaska (AP) — Alaska's credit rating has taken another hit in the face of a multibillion-dollar budget deficit that state officials have yet to close.
With Monday's downgrade by Moody's Investors Service, the state has seen its credit rating lowered by all three major rating agencies, including Fitch Ratings and Standard & Poor's Ratings Services.
In a statement, Gov. Bill Walker called the latest downgrade concerning but not surprising, noting that Moody's cited the state's "political inability" to address the deficit.
Walker proposed new taxes and tax increases and use of Alaska Permanent Fund earnings to help pay for state government. The tax pieces failed to get traction, and the permanent fund bill stalled in the gridlocked House.
State lawmakers recently ended their second special session this year without resolution on a fiscal plan.