State GO bonds get ‘AA’ rating

Fitch Ratings has given an “AA” rating to $449 million in Louisiana general obligation bonds that are slated for sale on March 1. In addition, Fitch affirmed the state’s overall credit rating of “AA” for its outstanding GO bonds, and describes Louisiana’s rating outlook as “stable.” In explaining the “AA” rating, Fitch stated Louisiana’s “financial management has been solid.” Louisiana’s credit profile, according to Fitch, “reflects the sound financial management demonstrated by the state,” including “a focus on spending control and maintenance of still solid reserves.” Fitch says “Louisiana’s economic recovery has been steady, with year-over-year employment gains since December 2010, currently surpassing the national average,” adding that the state “has had some recent success with economic development efforts that support diversification.” In 2008 and 2009, Fitch twice upgraded Louisiana’s credit rating, which had previously been an “A.” Last May, Standard & Poor’s raised Louisiana’s credit rating from “AA-” to “AA.” Last week Fitch gave an “AA” rating to roughly $34.6 million in bonds for East Baton Rouge Parish’s Green Light Plan, and gave all local securities a “stable” rating outlook.