[StBernard] LRA Chairman Norman C. Francis' Statement on Fitch's Revised Outlook on Louisiana

[Westley Annis]

LRA Chairman Norman C. Francis' Statement on Fitch's Revised Outlook on Louisiana

LRA Chairman Norman C. Francis issued the following statement today on Fitch's decision to revise Louisiana's ratings outlook: 

"After meeting with Governor Blanco and other state leadership, including the Louisiana Recovery Authority, in recent weeks, Fitch has announced they are raising their rating outlook on the State of Louisiana from negative to stable and reaffirming the 'A' rating on Louisiana's G.O. bonds. This is great news for all of us and a critical first step toward regaining our 'A+' bond rating. This action represents a positive outlook on Louisiana's economic conditions and sends a signal to investors about Louisiana's financial stability." 

"Fitch also acknowledged Governor Blanco's and the LRA's success at securing critical federal funding to rebuild the state's decimated housing stock, levees and infrastructure. According to their statement, Louisiana 'acted promptly to ensure balanced operations, maintained sizable financial balances, realized exceptionally strong fiscal 2006 revenue collections (bolstered by high oil and gas and sales tax revenues), and secured substantial federal assistance, including for levee repair and an extensive housing program.'" 

"We are further bolstered by Fitch's conclusion that Louisiana is well positioned to address the challenges that lie ahead as we rebuild and redevelop the New Orleans area, positioning us to regain our 'A' rating level."

"As our recovery moves forward, we are confident that the rating agencies will continue to see Louisiana heading in the right direction as we rebuild a state that is safer, stronger and smarter than before." 

Hurricanes Katrina and Rita devastated South Louisiana, destroying more than 200,000 homes and 18,000 businesses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.

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