S&P With Good News, Bad News For PA
by Tony Romeo
PHILADELPHIA (CBS) -- According to one credit rating agency, Pennsylvania – with its new budget -- has taken a step back from the financial cliff, but is not in a safe place yet.
With the enactment of Pennsylvania's new budget and revenue plan, S&P Global Ratings says it has taken the state off of its watch list for a potential downgrade.
But S&P has assigned a "negative outlook" for Pennsylvania, saying it believes the budget is "structurally imbalanced" and that revenue assumptions could prove to be "optimistic".
"[It's] the first time in five years we haven't actually had a credit downgrade. So I have said all along this is a step in the right direction. We're moving in the direction of actually getting adequate revenues," said Governor Wolf on Tuesday, choosing to emphasize the positive.
But the governor acknowledges that upshot of the S&P report is that more work needs to be done, though he says he believes revenue estimates are not overly optimistic.