SAN FRANCISCO Jan 31 Standard & Poor's revised
its outlook on Kentucky to negative from stable on Thursday,
citing concerns that the state's pension funding levels could
"The outlook revision reflects our concern over pension
funded levels, which have declined and are likely to continue
declining due to lower-than-actuarially required funding of
pension liabilities, and budgetary pressures associated with
funding post-retirement benefits," S&P credit analyst John
Sugden said in a statement.
S&P affirmed its AA-minus issuer credit rating on Kentucky,
noting it is experiencing a healthy economic recovery and its
revenue are improving. Kentucky also has a moderate debt burden,
according to the credit rating agency.