S&P cuts Minnesota's last perfect credit rating - KTTC Rochester, Austin, Mason City News, Weather and Sports

S&P cuts Minnesota's last perfect credit rating

ST. PAUL, Minn. (AP) -- Standard & Poor's has downgraded the state of Minnesota's last perfect credit rating, citing one-time solutions to budget deficits and lack of rainy-day funds.

The New York-based rating agency cut its AAA rating for the state's general obligation bonds to an AA+ rating on Friday.

Analyst Robin Prunty says the downgrade reflects the use of one-time measures to balance the budget and the prospect of "continued structural imbalance."

It's Minnesota's second downgrade since July, when Fitch Ratings cut its top rating by a notch during a 20-day government shutdown, the nation's longest state government closure in the past decade.

Under politically divided government, the state has turned to delaying school aid payments, raiding reserves and securitizing future tobacco payments from a legal settlement to address budget shortfalls in recent years.

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