Mississippi’s financial rating declines
Mississippi’s strategy of cutting taxes during a time of sluggish economic growth got another poor review last week from a credit rating agency.
Standard & Poor’s Financial Services downgraded its evaluation of the financial health of Mississippi’s state government from stable to negative. It is the third such agency in the past year to raise concerns about the state’s long-term ability to handle its financial obligations.
These evaluations are not just esoteric exercises. They can increase the cost of state borrowing, as investors expect higher interest where they perceive any risk of not getting paid back.