Standard and Poors (S&P) and Moody’s Credit Outlook released statements rating the recent decision by the Florida Supreme Court to uphold Governor Scott’s proposal for state employees to contribute three percent to their retirement as a positive factor for Florida’s credit rating.
Governor Rick Scott said, “It is great news that the S&P and Moody’s recognizes last week’s pension ruling as positive for Florida’s AAA credit rating. The court’s ruling supports our efforts to lower the cost of living for Florida families and we are doing the right things to pay down our state’s debt and reduce unemployment in Florida. Since I took office two years ago, we have cut state debt by $2 billion and our unemployment has declined to 8.0 percent- the lowest rate in four years. We will keep working to ensure Florida maintains its AAA rating with the S&P, continue to reduce debt and make Florida the most business friendly state in the nation so private-sector jobs can grow for Florida families.”
The S&P said that the decision “in favor of the state’s pension reform efforts is a a positive credit factor. While the decision is still subject to a rehearing motion, if final, the ruling should bring the state and participating government long-term budget relief and enhance the retirement systems funding over time.” (Click here to view the S&P’s entire statement)
Moody’s said “the ruling is credit positive for the state of Florida as well as for cities, counties, school districts, and other local governments whose employees are members of the plan.”