Statement on S&P lowering of Oklahoma's debt ratings
Standard & Poor’s Global Ratings has lowered Oklahoma’s
various debt ratings one notch due to sustained weak revenue collections.
S&P’s report can be viewed here https://go.usa.gov/xX3Dh.
"This report highlights several things that we've been
saying for some time now," said Secretary of Finance, Administration and
Information Technology Preston L. Doerflinger. "We need to fix the
structural budget deficit and our revenue problem."
S&P lowered general obligation bonds and appropriation
debt backed by the state’s credit enhancement reserve fund one notch from AA+
to AA and the state’s appropriation debt from AA to AA-. S&P also assigned
its AA- rating to the Capitol Restoration Project bonds.
“The downgrade reflects our view that persistently weak
revenue collections — leading to a declared revenues failure for the remainder
of the fiscal year (2017) — have further compounded the state's challenge to
achieve structural balance in fiscal 2018,” the report noted.
S&P further explained that future ratings could drop or
rise depending on what actions are taken to improve Oklahoma’s structural
budget deficit:
“In the absence of meaningful structural reforms
that align revenues and expenditures and that do not materially depend on
one-time budget solutions or measures that carry significant implementation
risk, we could lower the ratings,” the report states. “A recovery in economic
indicators, improvements in state revenue performance that we view as
sustainable, and growth in reserves could lead us to raise the ratings.”
Media Contact
MICHAEL BAKER
Director of Public Affairs
(405) 522-4265 | michael.baker@omes.ok.gov
 About the Office of Management and Enterprise Services
The Office of Management and Enterprise Services
provides financial, property, purchasing, human resources and
information technology services to all state agencies, and assists the
Governor’s Office on budgetary policy matters. Our mission: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.
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