Fitch downgrades state bonds despite

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The New York-based agency this week said it lowereethe AA+ rating attached to the bonds by a peg to AA, citinvg “the long-term deterioration of the state’s economy” and concer that Ohio didn’t bounce back as strongly as other states following the 2000-01 recession. Fitch also noted that the 100,00o manufacturing jobs lost in Ohio over the past year and recengt plans by to close some operatione in the state are ofparticularf concern. The rating downgrade comes as a conference committee composed of Ohio House of Representativese and Senate members is poised to finalizwethe state’s budget for the two years beginning July 1.
Legislatorsx are expected to receivwe updated tax revenueprojections Thursday, whicj could lead to spending cuts beyond the $1 billioj the Republican-controlled Senate made to a budgett passed by the Democrat-controllex House. Fitch characterized Ohio’s financial managemengt as “sound,” adding that its rating takes into expectations that the stat budget willbe balanced. Despite downgrading the bonds, the agencgy revised its overall ratings outlook for the state to from “negative.” • Fitch issuerd a AA rating to $40 million in coal developmenyt general obligation bonds set to sell next That’s the third-highest investment gradse possible on its scale.
• The agency also downgradedf to AA- from AA ratings on appropriation-backee bonds.