Moody’s Investors Service has downgraded Alaska’s credit rating for the second time in six months, citing the state’s massive budget deficit and its failure to find a long-term political solution.
In a report released Monday, Moody’s wrote that Alaska’s savings accounts will buy the state “several more years” to figure out its fiscal future. But, analysts wrote, the downgrade reflects the state’s “political inability — at least for now” to address the budget challenges brought on by lower oil prices.
The announcement came just a week after the legislature gaveled out of an unprecedented fifth special session without voting on the governor’s proposals to overhaul state finances.
It’s the fourth time since January the state has been downgraded by one of the three major ratings agencies. All three continue to warn further downgrades are possible.