Virginia’s primo, AAA bond rating is not imperiled by the budget impasse, Gov. Timothy M. Kaine and senior Virginia legislators said yesterday after spending a day in New York getting grilled by the major bond-rating agencies. “We told them we were all very optimistic that we’re going to have a budget,” Kaine declared upon his return to Richmond. “But they told us they’d be watching.”
Robert A. Kurtter, senior vice president for state ratings at Moody’s Investors Service, said his firm will “evaluate the circumstances as they evolve.” He was not overly concerned that Virginia is nearly three months late completing a budget, report Michael Hardy and Jeff Schapiro with the Richmond Times-Dispatch, because there is still time to resolve the issues. Said the T-D:
Should Virginia be forced to operate without a budget, Moody’s would closely monitor the state’s contingency plan and determine whether it ultimately fashions a fiscally responsible solution, said Kurtter.
Twenty-two days left in the fiscal year… and counting…
