Moody's Investors Service

Louisiana Credit Rating
2:56 pm
Tue July 17, 2012

Moody's takes note of Louisiana Medicaid cut

Moody's Investors Service says Louisiana's loss of as much as $859 million in Medicaid financing is a "credit negative" for the state.

The notation from the bond-rating agency does not yet affect the state government bond rating — currently high investment grade and stable — but denotes for investors a significant change in the state's balance sheet.

The Times-Picayune reports (http://bit.ly/Q4abRS) the cut is tied to a congressional reduction in Louisiana's federal Medicaid financing rate.

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