VT Insights: Aging population, retirement debt push down state bond rating
Vermont has lost its top-notch status with a national credit ratings agency — and retirement debt and low population growth are to blame.
Moody's Investors Service announced the bond rating downgrade Tuesday afternoon, pointing to Vermont's aging population and unfunded promises tied to pensions and retiree health care.
Vermont's general obligation bond rating at Moody's is now Aa1 with a stable outlook. The new rating is one step down from the highest possible bond rating, AAA, which Vermont had held since February 2007.
In general, a lower credit rating can make borrowing more expensive, though it was unclear Tuesday how the Aa1 rating might affect costs. State Treasurer Beth Pearce and Gov. Phil Scott each issued statements about the downgrade.
https://www.burlingtonfreepress.com/story/news/politics/government/2018/10/23/aging-population-retirement-debt-push-down-vermont-bond-rating/1742457002/
