For the second time this week, a major credit evaluation firm has lowered Louisiana's debt rating to the lowest among the 50 states as a result of the unknown long-term economic impact of Hurricane Katrina.
Fitch Ratings of New York moved the state's credit rating on its general obligation bonds from an A+ to an A on Thursday and said the state remains on a watch list for another potential downgrade. California is the only other state with a grade of A.
Standard & Poor's made a similar announcement Wednesday.
Both firms say Louisiana's ability to pay its debts is still strong, but the lower rating means the state will pay higher interest when it borrows money and will have more difficulty selling bonds to investors.
Great! Higher interest rates can't possibly help a state that is struggling to get the budget balanced. "Kick 'em when they're down" continues . . . .
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