OREANDA-NEWS. S&P Global Ratings assigned its 'AA' long-term rating to the State of Louisiana's series 2016-A general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on Louisiana's GO debt, its 'AA-' long-term rating on the state's appropriation debt, and its 'A' long-term rating on the state's moral obligation debt outstanding. The outlook is negative.

"The rating reflects our view of a constitutional requirement that requires balanced budgets and recent proactive budget adjustments in an effort to align revenue and expenditures in the near term," said S&P Global Ratings credit analyst Nora Wittstruck. "The rating also reflects our view of moderate debt ratios with a strong legal framework for debt repayment," Ms. Wittstruck added.

The series 2016-A bond proceeds will provide takeout financing for the state's series 2016-A GO bond anticipation notes (BANs) and permanently finance capital projects initially undertaken with the BAN proceeds.

The negative outlook reflects our view of Louisiana's continued weakness in economic and revenue trends.