Wall Street Journal: S&P Lifts Ohio Outlook Back To Stable As Budget Improves
July 15, 2011

Standard & Poor's Ratings Services on Friday raised its outlook on Ohio to stable, citing the state's progress in stabilizing its budget.

S&P rates Ohio at AA+, the second-highest possible rating. The stable outlook reflects the state's renewed progress in restoring its budget amid a modest economic recovery.

The ratings agency cited Ohio's long track record of proactive financial management, moderate debt levels and a struggling yet diversified economy. Ohio's economy has recovered somewhat since the recession--unemployment fell to 8.6% through May from a peak of 11% in March 2010--which has also boosted state revenue.

S&P had lowered its outlook on Ohio in January, citing the state's depletion of its budget stabilization reserve. More recently, the state has made progress balancing its budget through the 2013 fiscal year, easing pressure on the rating.