NASHVILLE – Gov. Bill Haslam says state officials are discussing the impact of a lowered credit rating if the U.S. government’s credit rating is downgraded.
Earlier this month, Moody’s Investors Service placed the federal government’s triple-A credit rating under review for a possible downgrade as Congress and the White House wrestle over raising the nation’s $14.3 trillion borrowing limit. Moody’s said there is a small but rising risk the government will default on its debt if the limit is not raised by Aug. 2.
If there is a default, Moody’s has warned that it probably will lower the triple-A credit ratings of five states, including Tennessee.
A triple-A rating is the highest for debt and tells investors an institutional borrower presents a minimal credit risk.
Haslam, a Republican, told reporters Wednesday he’s not overly concerned because Tennessee is in “maybe one of the two or three best financial shapes of any state out there.”