TOPEKA, Kan. (AP) — A major financial rating agency says Kansas’ credit outlook is stable after lawmakers overrode Republican Gov. Sam Brownback’s veto of a bill that largely rolls back the income tax cuts he championed in recent years.
The Kansas City Star reports that Moody’s Investor Services affirmed the state’s Aa2 credit rating and revised its outlook from negative to stable after the legislation action Tuesday night.
Kansas has experienced multiple credit downgrades in recent years. Moody’s says the state has repeatedly hurt its credit outlook by depleting cash reserves and deferring pension contributions, but the $1.2 billion tax increase would “go a long way toward solving the state’s budget challenges.”
Moody’s also upgraded the credit rating for the state’s IMPACT bonds, which are based on income tax, from A1 to A3.