The revised revenue forecast recently released for the state of Kansas, along with other positive economic indicators, led Moody’s Investors Service on Thursday to make a “credit positive” statement about the state.
Although a credit positive declaration doesn’t carry the weight of a rating or outlook change, it is indicative of the effect of a distinct event or development as one of many credit factors affecting the issuer, said David Jacobson, Moody’s spokesman.
The greater-than-expected revenue growth in Kansas, particularly from state income taxes, will reduce the burden of increasing education funding and also enable the state’s flexibility to improve reserves, according to Matthew Butler, a Moody’s analyst.
(Read more: Local – The Topeka Capital-Journal)