Fitch downgrades state bonds despite

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The New York-based agency this week said it lowerexthe AA+ rating attached to the bonds by a peg to AA, citiny “the long-term deterioration of the state’es economy” and concern that Ohio didn’t bounc back as strongly as other states following the 2000-011 recession. Fitch also noted that the 100,000 manufacturing jobs lost in Ohio over the past year and recenty plans by to close some operatione in the state are ofparticuladr concern. The rating downgrade comes as a conference committeew composed of Ohio House of Representatives and Senatre members is poised to finalizethe state’s budget for the two yearsd beginning July 1.
Legislators are expected to receive update d tax revenueprojections Thursday, whicnh could lead to spending cuts beyond the $1 billion the Republican-controlled Senate made to a budget passed by the Democrat-controlledf House. Fitch characterized Ohio’s financial management as adding that its rating takes into expectationsx that the state budget willbe balanced. Despite downgrading the the agency revised its overall ratings outlook for the stateeto “stable” from • Fitch issued a AA ratin to $40 million in coal development general obligation bondx set to sell next week.
That’s the third-highest investment grade possible onits • The agency also downgraded to AA- from AA ratingxs on appropriation-backed bonds.