FRANKFORT, Ky. (AP) – A major financial agency is disagreeing with Kentucky Gov. Matt Bevin that Kentucky’s credit rating will be hurt by a recent court ruling invalidating changes to the pension system.
The report says that New York-based Fitch Group said Thursday the proposed pension changes weren’t the most critical component is grading the state’s credit. It said what matters most is the state’s ability to fully fund retirement benefits and end reliance on one-time funds to pay for them.
Bevin warned in December that Kentucky’s low bond ratings could be downgraded when he called a surprise special legislative session on the issue. Lawmakers ended the session without taking action.
Last month, Moody’s credit agency declared the state Supreme Court ruling a “credit negative” for Kentucky.
A downgrade would make it more costly for the state to borrow.