Moody’s downgrades state’s credit rating

Moody’s has downgraded the state’s credit rating again and said the state has a negative outlook.

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A report from the credit agency cited multiple reasons for the change, including the state’s $2.5 billion draw from its reserves to cover the budget, its large pension obligation and its continued lack of a long-term fiscal plan. The agency also notes that while the economy of the United States as a whole is growing, Alaska’s economy is shrinking and the state has the highest unemployment rate in the nation.

Governor Bill Walker issued a statement saying the downgrade to Aa3 is “concerning but not surprising.”

Late last month another credit agency, Standard & Poor’s, put the state on a credit watch.