July 16, 2013 / 9:51 PM / 4 years ago

Fitch cuts Pennsylvania credit rating, cites pension funding

July 16 (Reuters) - Fitch Ratings on Tuesday said it cut Pennsylvania’s nearly $11 billion of outstanding general obligation bonds to double-A from AA-plus because of the state’s failure to address key fiscal issues, including public pension funding.

Fitch also cut its ratings on debt linked to the state’s general obligation rating, including economic development and school construction programs.

Fitch also cited a budgetary structural imbalance and the lack of a reserve cushion, saying that together the state’s problems “signal an inability or unwillingness on the part of political leaders to make difficult fiscal decisions,” Fitch said in a statement.

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