WISCONSIN'S BOND RATINGS CUT

This is not good for the state. I am proud of the bond rating for the city of Ripon, and I can only wish that the state begins to clear up its financial house and get their finances in order, soon:

MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services has cut its rating outlook on Wisconsin's debt to stable from positive, reflecting Wisconsin's continued efforts to build budgetary reserves consistent with a higher rating. The ratings agency affirmed its 'AA-' underlying rating (SPUR) on Wisconsin's GO debt while it assigned its 'AA-' rating to Wisconsin's 154.89 mln usd GO bonds series 2007C. S&P also affirmed its 'A+' SPUR on the state's appropriation-backed debt, its 'A-1+ rating on the state's CP notes, and its 'A-' SPUR on debt issued for Milwaukee Redevelopment Authority by the state. Wisconsin's high levels of nondiscretionary spending for schools, coupled with maintenance of the current revenue structure, continues to impede the potential for consistent and meaningful surpluses on a year-to-year basis, S&P said (italics mine). However, if the state's revenue forecasts prove conservative and the state demonstrates an ongoing commitment to building reserves, credit quality could improve over time, it added. The 'AA-' rating on Wisconsin's GO bonds reflects the state's improvement toward restoring fiscal balance to the general fund and maintenance of good liquidity, resilient economy, moderate debt burden and fully funded pension and other post employment benefit liabilities, the ratings agency said.

http://www.forbes.com/markets/feeds/afx/2007/11/15/afx4341856.html