The agency said Tuesday the debate during the last two legislative sessions over whether the state should honor the moral obligation bonds has created "headline risk." But Fitch said it doesn't believe the debate currently affects the state's commitment to pay.
The budget enacted for 2014-2015 includes
An outside report predicted that default would bring junk bond status. Legislative leaders and the governor have insisted the state must pay the bonds or the rating will drop and make future borrowing significantly more expensive.
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