Ohio's Credit Rating Downgraded to "Negative Outlook"

The Associated Press reports:

A major ratings agency has given Ohio's credit rating a negative outlook partially because of decisions made in the latest state budget, putting the state in danger of having its rating dropped again.

Moody's Investors Service cited the state's decisions to delay debt payments until future years and rely on revenue from expanding gambling that's facing a legal challenge as factors in its decision earlier this week. It also repeated concerns about the overall outlook of the state's economy and revenue picture.

In June, Moody's dropped the state's rating from the second highest to the third highest and gave it a stable outlook. Monday's move suggests the state's credit rating is at risk of seeing another drop.

The lower a state's credit rating, the more expensive it becomes to borrow money to finance a variety of infrastructure projects.