NASHVILLE, Tenn. (AP) -- Moody's Investors Service today upgraded Tennessee's bond rating following Governor Bredesen's recent presentation to New York rating agencies.
Moody's cited Tennessee's "return to long-term fiscal stability" and an improving state economy as reasons for upgrading the general obligation bond rating from Aa2 to Aa1 -- the agency's second-highest rating. Moody's also revised the state's outlook from positive to stable.
Moody's outlook says Tennessee faces ongoing pressure to fund education and health programs and notes a continuing decrease in manufacturing.
But says the state's strong fiscal management along with improving finances will result in long-term fiscal stability.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
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