Kentucky

The ratings agency cited low days cash on hand and operating losses at the system, which operates one of the leading academic medical centers in Kentucky.

The state's government now expects general fund revenues to decline 2.3% in the current fiscal year from the previous fiscal year.

The state is expected to pursue a TIFIA loan instead of toll revenue bonds.

The deal is the second large bond issued from the Public Energy Authority of Kentucky this year.

Southeast state governments are among the most dependent on federal Medicaid, SNAP and FEMA funding.

Moody's based this downgrade on the lowering of the rating of the United States government.

The state hopes bonds and associated incentives will help to address a state-wide housing shortage.

A $150 million housing bonds with a taxable component is anticipated for May and $110 million higher education student loan bonds are also anticipated for that month.

The ratings agency cited weaker than expected financial performance in fiscal 2024 and a slow anticipated recovery in coming years.

Moody's cited heavy reliance on reserves, potential for continued operating deficts, and a fall 2024 decline in enrollment as factors in the downgrade.