North Carolina loses triple-A rating.

• Position: News Briefs - Brief Article

Moody's Investors Service in August downgraded the State of North Carolina one notch to Aa1 from AAA. The rating agency cited the state's ongoing budget dispute, reliance on one-time revenues, and political and economic barriers to revenue reform and rebuilding reserves as reasons for the downgrade. Moody's was careful to emphasize that North Carolina's problems are not a function of neglect or mismanagement, but that spending growth has simply outpaced the state's efforts to address structural imbalances. Moody's has suggested establishing a state lottery and extending the state sales tax. The...