Rating Agencies Downgrade State of Tennessee's Bond Rating.

• Position: Moody's Investors Service, Fitch IBCA - Brief Article - Statistical Data Included

Both Moody's Investors Service and Fitch IBCA downgraded Tennessee's bond rating after the state legislature voted August 8 to override the governor's veto and adopt a budget that fails to address annual revenue shortfalls. Moody's downgraded the state from Aa2 from AAA, while Fitch lowered the state's rating to AA from AAA. These actions came on the heels of a July downgrading of the state by Standard & Poor's to AA from AA-plus. All three agencies cited concern over the state's reliance on the sales tax, which accounts for more than 60 percent of revenues. The state has struggled to...