Standard & Poor's Ratings Services said it revised its outlook on New Hampshire to stable from negative and affirmed its AA long-term rating on the state's general obligation bonds.
Standard & Poor's also affirmed its AA/A-1-plus ratings on the New Hampshire Business Finance Authority's GO variable-rate demand bonds.
The long-term component of the rating on the authority's bonds is based on the state GO debt rating and the short-term component is based on a bank facility from the Bank of New York Mellon. At the same time, Standard & Poor's assigned its AA rating to New Hampshire's GO refunding bonds series 2014A and capital projects bonds series 2014B.
"The outlook revision reflects our view that the financial risk to the state has been reduced following a settlement with the majority of hospitals in a lawsuit concerning Medicaid enhancement tax revenues," said Standard & Poor's credit analyst Henry Henderson. "Although the New Hampshire Supreme Court could uphold a lower court decision that the tax is unconstitutional, we believe the impact of such a ruling would be limited and manageable, despite the state's thin financial position."
