Tag Archives: downgrade

TN Republican Congressmen on S&P Downgrade

A downgrade of the nation’s debt by one rating agency has some in Tennessee’s congressional delegation playing the blame game, reports WPLN.
Rep. Scott Desjarlais, who voted against last week’s debt deal, said he’s been part of the ongoing effort by House Republicans to put the country on a “fiscally sustainable path.” Desjarlais says Senate Democrats and the President have blocked those efforts to enact what he calls “common sense spending reductions.”
Congressman Marsha Blackburn of Brentwood is calling for the resignation of Treasury Secretary Tim Geithner.
Tennessee’s Senators are taking a less partisan tone. Republican Bob Corker said the downgrade didn’t happen overnight and pledged to work toward larger budget cuts. Senator Lamar Alexander says lawmakers will have to work across party lines to reduce federal spending.

A sampler of emailed press releases on the subject is below:

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Haslam ‘Not Overly Concerned’ With Possible Downgrading of TN Credit Rating

While calling Tennessee’s credit rating “very important,” Gov. Bill Haslam on Wednesday sought to downplay the “likely” downgrading of the state’s AAA credit rating if Congress allows a default on the nation’s obligations, according to the Chattanooga TFP.
On Tuesday, Moody’s Investors Service said it would probably would lower top credit ratings for Tennessee and four other states if the U.S. doesn’t raise the federal government’s $14.3 trillion debt ceiling.
“Regardless, the state of Tennessee will be in good shape,” Haslam said, speaking to reporters. “I mean, I think we’re in maybe one of two or three of the best financial shapes of any state out there.
But that impact on our debt would cause some increased interest costs or could, in some instances,” he said. “So we’re concerned about it, but not overly, because of the financial condition we’re in.”
The credit agencies’ rating of debt affects state and local governments’ borrowing costs when issuing bonds. In its news release, Moody’s said the Volunteer State has several things going against it.

Note: Post on the Moody’s move HERE.