Alaska’s bond rating could be lowered by a ratings agency if the legislature does not take more action to address the state’s large budget deficit.
Standard & Poor’s Ratings Services revised its outlook from stable to negative in a ratings report released Tuesday.
The agency said it might lower the rating by more than one notch, if lawmakers don’t enact measures to begin correcting Alaska’s “fiscal imbalance” within the next year.
On the contrary, if legislators create a path for a sustainable Alaskan budget with strong reserves, the bond rating can be maintained.
Alaska has been dealing with multibillion-dollar deficits amid low oil prices and using savings to help balance the budget.