Fitch issues bond rating downgrade

Vermont State Treasurer Beth Pearce and Governor Phil Scott issued the following statement after Fitch Ratings, Inc. announced their decision on the State’s bond rating.

“Fitch Ratings has downgraded the general obligation credit rating of the State of Vermont from AAA to AA+ with a stable outlook, its second highest rating. This outcome is not unexpected, and while it is not the outcome we’d aimed for, Fitch’s report also noted many positives. Those include the State’s continued strong financial management, sound reserves, the leveling of Medicaid spending, and modest steps taken towards reducing our pension liabilities, including a path to prefunding for our state employee and teacher other post-employment benefits (OPEB).

“The report underscores, once again, the State’s demographic challenges as a deciding factor. The AA+ rating ‘is sensitive to changes in the State’s fundamental economic growth trajectory,’ according to the report. It also notes: ‘Material and sustained improvement in the State’s demographic profile, such as through consistent population and labor force gains, could support revenue growth prospects and a more robust revenue framework assessment.’

“Important progress has been made in several areas this year. The Treasurer’s Office partnered with the Governor and General Assembly to reduce long-term pension and post-employment benefit pressures. In addition to fully funding the actuarially determined employer contribution (ADEC), the FY2020 budget increased reserves to the level recommended by the rating agencies.

“However, our demographic challenges continue to overshadow all of our other efforts. We need to continue to work together, as we have with the pension liabilities, to further advance policy initiatives that bring more people to Vermont and more people into our workforce.

“Fitch’s report recognizes that many policy initiatives have been put forth by the Governor’s Office and the Legislature, most notably those aiming to attract more people to Vermont, such as the remote workers incentive. The fact that population declines have leveled off in the past two years is encouraging, but it is clear we have more to do to make Vermont more affordable for families and businesses and to revitalize our economic centers throughout the State.

“Vermont has many strengths, which all three rating agencies continue to recognize and uphold.  We are confident these attributes will accrue to our benefit in the years and decades ahead. To ensure a strong future, the Treasurer’s Office and the Governor stand ready to partner with the General Assembly, and other State and local officials to continue progress and reverse our demographic trajectory.”

Source: Office of the State Treasurer

Image courtesy of Wikimedia Commons/Shashank457

3 thoughts on “Fitch issues bond rating downgrade

  1. I see our illustrious progressive activist Auditor of Accounts, Mr Hoffer – who like a heatseeking missile has never failed to appear  to carpetbomb those stubborn things called facts with remotely plausible but nevertheless foolish reasonings each time stories appear which reveal the ever-widening cracks in the walls of our state financial picture and damning results thereof…‎

    But now state of our state can no longer be hidden; walls are falling, fascia is faded, siding is falling off,  roof caving and foundation crumbling despite glib dismissals from the lefties including our governer Mr Scott…who blame it all on aging population and not enough ppl…all lies.‎

    Suddenly Mr Hoffer or any of the lefties are nowhere to be found…ever the prevaricating equivicater with a deck of cards up sleeve always at the ready to offer reasonings  which serve as defensive maneuver  protecting the Dem/Prog lies and result of one-party rule since 2006. Also a disttraction from what is plain to see by those of us with  eyes wide open… the tax-and-spend Marxists have finally run out of other ppls money…‎

    • They ran out of my money… or should I say I yanked it out from under them. Vt. in the rear view mirror has been one of the most profound examples to my family how much money VT extracted from us. Wait till they go after your retirement accounts in for the form of a wealth tax. It’s will come sooner rather then later.

  2. It’s a wake up call if there ever was one. These folks sit in their ivory tower in Montpelier and for whatever reason are oblivious to the goings on throughout the rest of the state.

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