Credit Rating Agency Gives Oklahoma A Slightly Better Rating
OKLAHOMA CITY - Oklahoma gets mixed reviews from one of the nation's largest credit rating agencies after lawmakers passed hundreds of millions of dollars in tax increases.
Moody's credit rating agency gave Oklahoma a credit positive for the first time in more than five months, but said quite a bit of work still needs to be done.
The rating agency gave Oklahoma a negative credit outlook last fall after lawmakers were unable to fill a $200 million budget hole.
In its latest report, Moody's gave Oklahoma a slight credit positive, saying the recent passage of more than $500 million in tax increases was a step in the right direction.
This all matters because agencies like Moody's affect the interest rates on money the state borrows. The more negative the outlook, the higher the interest rates and, likely, the higher the taxes on everyday Oklahomans.
Oklahoma isn't out of the woods just yet though. Moody's said despite the recent tax increases, which it's calling responsible, they aren't enough to solve Oklahoma's structural deficit of $1.3 billion which continues to hurt Oklahoma's rating.