Vinny’s Blog

SAN FRANCISCO (Reuters) - Standard & Poor’s on Wednesday cut New Jersey’s bond rating a notch due to an unfunded pension shortfall and high debt, while Moody’s Investors Service warned Arizona of a possible downgrade by revising its outlook on the state to negative from stable.

Concerns are mounting about the finances of state governments. Some in Congress have even suggested legislation to allow states to declare bankruptcy to help them put their finances in order.

State governments continue to struggle with the effects of the 2007-2009 recession. Their revenue remains weak and altogether they face budget deficits of at least $100 billion for the next fiscal year, beginning for most in summer.

http://www.reuters.com/article/2011/02/09/us-states-credit-idUSTRE7187Q720110209