August 31, 2007
McNally: “Bond Rating Upgrade Good News for
Nashville, Tenn. – Senate Finance Ways and Means Committee Chairman Randy McNally (R-Oak Ridge) applauds the hard work of Tennessee to upgrade
the state’s bond rating.
“Six years ago we were facing a state budget crisis and our bond rating took a hit,” stated McNally. “We were forced to make difficult decisions, and we had a few tight budget years. Careful management of the state’s finances has placed us back on the right track.”
On Aug. 16, 2007, Moody’s Investors Service upgraded the state of Tennessee’s general obligation bond rating from Aa2 to Aa1. According to Moody’s the “rating upgrade reflects actions taken by the state to strengthen its finances and return to long-term fiscal stability, together with ongoing state economic improvement that has benefited revenue performance and has led to increased reserve levels.”
Tennessee’s credit strengths that led to the upgrade include “state actions to restore structural budget balance, economic and financial improvement that has strengthened revenues and reserve levels, TennCare cost containment reforms, modest state debt levels and well funded retirement systems.”
“We have come a long way,” continued McNally. “The upgrade is good news for Tennessee. It is evidence that we have made progress and that our fiscal house is in order.”
Serving his sixth term in the state Senate, McNally serves as Chairman of the Senate Finance, Ways and Means Committee. He is also the Vice Chairman of the Senate Rules Committee and a member of the Senate General Welfare, Health and Human Resources Committee.