AA/Stable; $2.29 billion outstanding Standard & Poor's Ratings Services long-term and underlying rating (SPUR) on the State of Louisiana's general obligation (GO) debt is 'AA'. The outlook is stable. The ratings also reflect our view of the state's: Demonstrated willingness to make revenue and expenditure adjustments to correct structural imbalances during the current low stage of its revenue cycle; Economy, which has generally moved in line with the nation as a whole, but with lower-than-average unemployment, despite a below-average demographic profile and concentration in the oil and gas industry; Almost unlimited ability to raise taxes and other revenues due to its sovereign powers and the absence of constitutional revenue raising limits; Strong governmental framework, with a constitutional requirement that budgeted...
Companies mentioned in this report are:
- Deutsche Bank AG
- Goldman Sachs & Co.
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Research Type: Commentary
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