Will Missouri’s economy tank if the U.S. economy does? One investor services group thinks it might. Moody’s has downgraded Missouri’s credit outlook from stable to negative. The agency says the state relies too heavily on the federal government through defense contracting and military bases and could place itself in jeopardy if the federal government can’t live up to its end of the deal on Medicaid funding. Governor Jay Nixon shrugs off the report.
“Missouri maintains its AAA credit rating,” Nixon says. “They (Moody’s) were specifically very positive about the way we’ve managed money, especially over the last few years in difficult economic times, and it confirms that we’re managing our money well in the state.”
Nixon says the report says more about the uncertain times in Washington D.C. with the sequestration looming. Nixon says he’s confident the state can weather any coming economic storm.