Capitolwire: Credit Downgrade Adds Marginally To The Cost Of State Borrowing

Capitolwire reported Tuesday the Moody’s and Sandards and Poor’s rating services downgrade of Pennsylvania’s credit rating will only marginally affect the Commonwealth’s borrowing costs.

“In reality, just given the fact that interest rates are near zero, the marginal costs of the downgrades are not substantial,” said Budget Secretary Charles Zogby. “It adds marginal cost to the cost of borrowing. Certainly as a state we pride ourselves on well managed, well-structured debt (and) their concerns are what we are concerned with.”

He also noted pension reform was “very much on our minds” for the remaining legislative session.