Tennessee’s AAA credit rating has been placed under review by Moody’s Investors, along with four other states. This means if the federal government defaults in August, Tennessee’s high rating might be downgraded.
If a downgrade does happen, the state will have to pay higher interest on its bonds.
Governor Haslam said he’s not sure why Moody’s has picked Tennessee. There are currently a total of 15 states with AAA ratings, only five of which are up for review. The Governor said he wants to know why Tennessee is included.
“Why these five and not the other ten, I don’t know. I’ll have to find out the answer to that. I just don’t know.”
In September, Haslam will be meeting with three bond rating agencies to confirm Tennessee’s AAA rating.
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