A recent reports shows that Minnesota ranks 19th for municipal bond credit outlook. | Pixabay
A recent reports shows that Minnesota ranks 19th for municipal bond credit outlook. | Pixabay
A recent downgrade from “stable” to “negative” by municipal bond manager Conning Investment Products Inc. puts Minnesota down to 19th among states ranked by credit outlooks.
The Center Square recently reported on the downgrade by Conning, noting that the state’s downgrade was linked to concerns related to the COVID-19 crisis.
With a raw score of 23.08, Minnesota’s municipal bond market is sandwiched between Iowa, with a raw score of 22.16, and California, with a raw score of 23.12.
Utah’s municipal bond market tops the chart with a raw score of 12.6, and Kentucky rounds out the lowest rank with a raw score of 40.64.
Expectations of low revenues coupled with the outlays states have made in response to the coronavirus pandemic are cited in the study as factors leading to the downgrading of municipal bond markets.
Despite injections of federal relief, the Conning study still predicts difficulties for many states.
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