Moody's Downgrades Kansas Credit Outlook Over Highway Bonds
The outlook of $2.1 billion worth of highway revenue bonds in Kansas has changed from stable to negative, according to a report from the bond rating service Moody’s Investors Service.
The shift is linked to Gov. Sam Brownback and Kansas lawmakers endorsing a plan to move millions of dollars from the state’s highway fund to the general fund in an effort to cover massive revenue shortfalls. If Brownback goes through with that decision, $185 million would be transferred and 25 large-scale highway projects would be delayed statewide.
Another rating services company, Standard & Poor’s, has put Kansas on a “credit watch,” meaning the state’s AA rating is in jeopardy if revenue shortfalls continue.
Standard & Poor’s will be looking at how Brownback responds to these revenue shortfalls over the next three months before making any decisions.
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