State Officials Make Case for AAA Rating

Tennessee’s top officials are flying home from New York City. They’ve spent two days trying to convince bond rating agency’s the state deserves it’s AAA standing, despite a downgrade of the federal government.

Moody’s named Tennessee as one of five states so dependent on Washington’s money that its AAA rating needs to be reviewed. But Finance Commissioner Mark Emkes and Governor Bill Haslam tried to convince the ratings agencies otherwise.

“We don’t think Tennessee is any more susceptible to federal cutbacks than any other state.”

Haslam says federal spending represents 17 percent of the state’s economy, which is close to the national average. That includes federal money in the state budget as well as the economic engines of Fort Campbell and Oak Ridge National Lab. The figure also factors in the Tennessee Valley Authority, even though the utility doesn’t get its funding from Washington. Not counting TVA, Haslam says federal spending represents just 16 percent of the state’s economy.

Rating agencies are expected to make their decisions on whether to reaffirm or revise the state’s AAA rating in about a month.