Governor has 'high hopes' state will maintain credit worthiness

Tuesday, October 6, 2009 at 3:20pm

After meeting with the nation’s bond rating agencies in New York, Gov. Phil Bredesen expressed “high hopes” Tuesday that Tennessee will maintain its credit worthiness.

The state government now enjoys a AA-plus rating, roughly one step below the highest score, and the state is preparing to sell bonds to finance new bridges and economic development projects for Chattanooga’s new Volkswagen plant. The ratings are critical to state governments, adding or subtracting millions of dollars to the cost of a bond sale.

“We have high hopes,” said Bredesen after meeting with Fitch and Standard & Poor’s, and Moody’s rating agencies. “Obviously, we’re going through these tough times right now. … I’ve certainly asked them to restore us to AAA as I have done at previous times. But I think basically, if they’ll come out with a strong AA-plus that we have, it’ll work well for us.”

Like every state, Tennessee has been hit hard by this economy, losing $1 billion in revenue. But Bredesen said the rating agencies were impressed by his administration’s two-year plan to spend Tennessee’s share of the federal economic stimulus money.

“I’d say on the whole Tennessee is riding pretty good with them right now,” the governor said during a  teleconference with reporters. “We’ve managed our way through this downturn and we seem to be taking care of business and keeping our focus where it needs to be. We think it went very successfully and we’re certainly hoping for a good result.”

He said the agencies should announce Tennessee’s new bond ratings by the middle of next month.

2 Comments on this post:

By: govskeptic on 10/7/09 at 10:41

Didn't know the Rating agencies needed pitches from state
officials on how to rate bonds. Hopefully he whispered a
few good words for the soon to be way over bonded city
of Nashville for their forth coming"Good faith" backed overload.

By: TharonChandler on 10/7/09 at 1:24

Say, govskeptic; that is an astute observation.

Ben Franklin once said something like: "the man whom relies on Hope might have a very long wait, indeed". That is large problem in a state where the Bar Association is not an honest venue competing to represent the worthy but a paid off mob doing the devils will. The largest problem or change in attitude i've had against the enthralled Governor, is that he seemed to be so 'accountable' to the people (like with pictures of him riding on a kiddy train, with America's Favorite Sweetheart; which is something I'd never do, I'd take her onto the Wabash Cannonball). Then he let the Dept of corrections Screw my work Career; after the Dept of education had done so; and then he enabled that small hick-town I came from a decade ago, the one that he can never controll, down there in 'the barrons'. "Bond Rating" have nothing to do with the state executive being accountable to good people on the score of their professional career (and therefor their health and love-life).

Phil's a little whore, with some kind of 'rubberband' insinuation from lawrenceburg and Tom Hay..