...Steady State Credit Picture: As U.S. states start budget negotiations for the fiscal year that begins on July 1 for most, Fitch Ratings notes that credit conditions are significantly improved since the recession and expects most state ratings to remain stable as states continue to manage budgets closely while economic recovery supports revenue growth. Strong Shared Credit Fundamentals: U.S. states generally have broad economies and tax bases and substantial control over revenue raising and spending. In addition, the states' primary role is funding rather than providing services (primarily education and social services), allowing some additional flexibility to control expenditures during fiscal challenges by reducing funding to service providers, including local governments. These factors support the high ratings that Fitch assigns to credits in this sector. Rating Histories Illustrate Stability: A review of the rating histories for each state provided in this report shows that Fitch's ratings...
