Governor Confident in State Debt Policies

Governor Phil Bredesen says the state is on track to get the highest bond ratings.

This week the governor met with three New York credit-rating agencies Fitch, Moody’s and Standard & Poor’s.

None of the agencies changed their 2006 evaluations for the state.

Fitch and Standard & Poor’s kept their rating at double-A-plus: one notch below the maximum triple-A. Moody’s also maintained the state’s double-A rating: two notches below triple-A.

Despite significant contributions to the Rainy Day Fund this year and turning the financially troubled TennCare bureau around, Bredesen says Tennessee has to overcome its rocky debt history.

“When you analyze and investor or an investment company you want to see how well they do when things are going up and you want to see how well they do when things are going down. And the rating agents are looking the same way at the state. They want to see what we do when times are good and they also want to see what we do when times are bad. And frankly that’s when we fell off the wagon before.”

Bredesen says if the state remains consistent with its debt policies it could get the triple A rating in five to ten years.