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Agency Warns Pension Ruling A ‘Credit Negative’ For Kentucky
By: Associated Press
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FRANKFORT, Ky. (AP) – A Supreme Court ruling striking down changes to Kentucky’s troubled pension systems has earned a warning from one of the country’s largest credit ratings agencies.
Moody’s on Thursday declared the court’s ruling a “credit negative” for Kentucky, saying it delayed reforms to the state’s severely underfunded pension plans that were set to provide modest savings over the long term.
The declaration does not change Kentucky’s credit rating, but it indicates the uncertain future of the state’s ability to pay off its massive pension debt. The agency said the ruling may only be a setback if lawmakers pass a new law in 2019.
Republican Gov. Matt Bevin called the legislature into session on Monday to try to pass a new law, but lawmakers adjourned without voting on anything.