ST. PAUL, Minn. (AP) — A major credit rating agency has upgraded its outlook on Minnesota’s financial status from “negative” to “stable.”
Minnesota Management and Budget announced Tuesday that Moody’s Investor Services bumped up the state’s standing. It doesn’t involve an actual increase in the state’s credit rating, which remains at the second-highest level possible. But Management and Budget Commissioner Jim Showalter says it shows the state has “turned a corner” in its financial management.
Moody’s put Minnesota on negative watch in August 2011. The agency cited political dysfunction in St. Paul and a reliance on temporary solutions to address budget deficits.
The state plans to sell three series of bonds in August, and credit agency ratings influences interest rates for those bonds. Showalter recently pitched Minnesota’s improving finances to bond agencies in New York.