Standard & Poor's Rating Service is saying it will lower the state of Pennsylvania's credit rating in the next few months if state's leadership doesn't get its act together, pension-wise.
In a report to investors, S&P analyst John Sugden warns that if Pennsylvania's political leaders don't implement "meaningful pension reform," the agency will lower ratings for the $545 million the state plans to borrow in general obligation bonds, and the $293 million it has planned for bond refunding. S&P currently places a AA ("Very Strong") rating on Pennsylvania's debt.
The latest threat comes on the heals of a report issued in 2012, when the agency gave Pennsylvania two years to bring its debt obligations in balance with revenues. The threat of a downgrade was made again in April of 2013.
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