August 7, 2019 Blog, Press Release

Moody’s Rates Bevin’s Harmful Pension Overhaul “Credit Negative”

In case you missed it, a top credit rating agency is throwing even more cold water on Matt Bevin’s harmful pension overhaul by declaring it “credit negative.”

Bevin’s legislation faced criticism for putting older workers “at risk of having their pension benefits frozen” and creating an “uncertain future” for thousands of Kentucky public workers.

Here’s what they’re saying about Bevin’s latest piece of bad pension news:

  • “Kentucky’s new pension law will have a negative impact on the state’s credit outlook, Moody’s Investors Service reported last week.” – Louisville Courier-Journal

  • “Kentucky’s new pension law looms as a ‘negative’ for the state’s credit rating, according to a credit rating agency’s report.” – Associated Press

  • “The bill was designed to address an employer-funding issue without providing more funding.” – Jim Carroll, president of Kentucky Government Retirees

  • “The new law will push a pension cost increase out a year. Deferring pension costs doesn’t actually lower them over the long term.” – Tom Aaron, a senior analyst with Moody’s

  • “A Sector Comment published by Moody’s on Aug. 1 said that what was ultimately passed could have ‘credit negative’ impacts on the state’s credit rating.” – WAVE 3

  • “Moody’s Investors Service has issued a report calling the new pension legislation passed by the Kentucky General Assembly two weeks ago ‘credit negative’ for the state, as it pushes public pension costs into the future and increases the chances that the state will be responsible for a larger share of its worst-funded pension plan.” – Insider Louisville