The deal to raise the debt ceiling means South Carolina will keep its AAA credit rating from Moody's. That means it costs less to borrow money for things taxpayers depend on like schools, roads and bridges.
"South Carolina has AAA credit for a reason," state Treasurer Curtis Loftis said in a press release. "We live within our means and are constantly guided by sound financial principles. The negative outlook for the federal government has spilled over to the states and is a wake-up call that government must not spend more than it has. The State Treasurer's Office is monitoring this situation and is in constant contact with the rating agencies."
Moody's investors service will be conducting a credit review of five states, including South Carolina within the next 90 days. To keep its rating, the state must maintain credit quality higher than that of the federal government in the event the U.S. government credit would be downgraded.
"The bottom line is simple: the action by Congress and the President causes uncertainty in the business community," Treasurer Loftis said. "We must demand fiscal conservatism and transparency from Washington. South Carolina is doing its part and I ask D. C. to do the same."
Maryland, New Mexico, Tennessee and the Commonwealth of Virginia are the other states Moody's will review. The five states have a combined $24 billion of outstanding debt.
