Minnesota officials said today that Moody's Investor Services has revised the outlook for the state's general obligation bonds from "negative" to "stable" outlook.
The company's rating of the state's general obligation bonds remains at Aa1, one step down from the top AAA rating.
The state plans to sell three series of bonds, for a total of $470 million, on Aug. 6.
Minnesota Management & Budget Commissioner Jim Schowalter said the agency's revision is good news for the state:
"We have turned a corner. This action affirms that the state’s financial management is headed in the right direction. The state has a balanced budget, a projected structural balance in the out years, has filled the cash flow and budget reserve accounts, and repaid two-thirds of the previous education shifts. The recently passed biennial budget did the job to balance a projected deficit without the use of one-time measures."
The state also expects ratings updates soon from Fitch Rating Agency and Standard and Poor’s. State officials said Fitch and Standard and Poor’s downgraded Minnesota bonds from AAA to AA+ in 2011 based on the state’s use of one-time measures to address budget deficits.
