The fiscal health of U.S. states is under the spotlight after Moody’s Ratings lowered the United States’ credit score.
In a May 16 announcement, the agency downgraded the United States’ long-term credit rating by one notch, citing the federal government’s deteriorating fiscal outlook.
Moody’s decision cast a shadow over the financial markets to kick off the trading week, sending yields on U.S. government debt higher.
But while market watchers monitor the potential fallout on Wall Street, state fiscal conditions have become the focus of attention.
For now, states might be largely unscathed by Moody’s action. A dozen states, including Florida, North Carolina, Tennessee, and Texas, maintain perfect credit scores from various ratings agencies….