More Bonds Better, Newspaper Says

Oklahoma’s bond rating would be better if the state issued more bonds for vital infrastructure projects, the Daily Oklahoman said Friday in a lead editorial.

“Obviously, bond debt shouldn’t be employed willy-nilly for every special-interest project, but true state needs serving a broad public function are legitimate,” the newspaper opined. “By neglecting these needs, lawmakers are actually increasing the cost taxpayers will ultimately bear.”

The state has issuer ratings of Aa2 from Moody’s Investors Service, and AA-plus from Fitch Ratings and Standard & Poor’s.

“One thing preventing Oklahoma from achieving S&P’s top rating is that we don’t have more bonded indebtedness,” the editorial said. “That may surprise some, but ratings agencies see that as a sign of neglect of basic infrastructure. The failure to maintain and address core needs today means higher expenses tomorrow.”

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