FOR IMMEDIATE RELEASE
July 1, 2008
Contact: Michael DiResto, 225-342-7000

Louisiana's GO Debt Rating Upgraded To 'A+' by S&P.

Jindal Says Strong Signal for Increased Economic Investment in LA

BATON ROUGE - Today, Standard & Poor's Ratings Services (S&P) announced that it upgraded Louisiana's general obligation (GO) and appropriation-backed debt ratings to 'A+' from its previous 'A' rating.

In a press release, S&P credit analyst Peter Murphy said, 'The upgrade is due to continued strong revenue performance and budget discipline in the aftermath of hurricanes Katrina and Rita. The rise in reserve levels should enable the state to withstand a slowdown in storm recovery-related tax and grant revenue.'

Murphy said, 'In the past three years, the state has prudently managed surpluses by allocating them to one-time expenditures or to recurring items that are affordable.'

Governor Jindal said, 'We passed an historic budget this year that eliminated our state's long-time use of one-time money for recurring expenditures. That disciplined fiscal approach, coupled with our search for savings and work to reduce unnecessary state spending, has gained us national attention from S&P today. Their upgrade of our bond rating to an 'A+' is a strong signal to businesses all over the world that Louisiana is not just open for business, but we are working to become the best place for businesses to grow and succeed and for workers to raise their families and prosper.'

Jindal added, 'This upgrade in our rating lowers the cost of debt and encourages businesses to invest here, but we clearly have more work to do to continue to improve our ratings and to foster more business investment and greater job creation so our kids don't have to leave home to pursue their dreams.'

Commissioner of Administration Angele Davis has been coordinating conference calls between state officials and rating agencies over the past couple of weeks. On S&P's announcement today, Davis said, 'This is expert, independent validation of the responsible fiscal approach we have been taking to strengthen Louisiana's financial situation. Better still, the positive return on our fiscal management from this upgrade will be reflected in significant taxpayer savings.'

State Treasurer John Kennedy said, 'Today's announcement clearly underscores the need to continue on our path of fiscal discipline, sound investment, and strong governmental reforms. A higher bond rating for our state means more business development, greater economic investment, and sustainable job growth for the people of Louisiana.'

S&P said the state's 'A+' GO rating reflects the state's strong financial management, with constitutional and statutory provisions that have established and restricted rainy-day reserves and restrained Louisiana's ability to incur debt.