LOS ANGELES — Two rating agencies have downgraded Hawaii this year, but they didn’t go far enough, Bank of America Merrill Lynch analysts wrote in an Aug. 5 municipal market commentary, saying the state’s general obligation bond rating should be a notch lower than the agencies’ double-A level ratings.

The rocky recovery that has never quite taken hold has left most state governments battered — and based on economic talk of a double dip, it will be a long time before states can steer their economies on to smooth pavement again.

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