With compromise debt ceiling deal now having passed both the U.S. House and Senate, a possible default of the federal government has been averted and the U.S. government retains its AAA credit rating.
That also means South Carolina keeps it AAA rating as well. Two weeks ago Moody’s Investors Service said they were putting South Carolina and four other states on review for possible credit downgrade if a deal to raise the nation’s debt ceiling was not reached by the August 2 deadline.
State Treasurer Curtis Loftis says he was not sweating the debate in Washington because he was confident that after all the political posturing was exhausted, a deal would eventually be reached. However, he says the process has become very flawed because the average voter can’t understand the deal.
The states that were up for review along with South Carolina were Maryland, New Mexico, Virginia, Tennessee, and New Mexico. The states are among 15 nationwide that enjoy top bond ratings. Moody’s says they targeted the five states because of either a heavy reliance on federal revenue or the presence of a high number of federal employees who could be furloughed.
A number of political observers say the debt ceiling fight allowed conservatives, especially those associated with the Tea party, to shape the debate on the national debt. Loftis says he for one does not buy that argument. Loftis says it shows that Congress needs to go back to more civil, rational debate in order to iron out disagreements that lead to compromises that are in the best interest of the people.
Loftis said he would like to see more transparency in Washington so the average citizen can understand how their lives are being affected by the decisions made by those in the White House and Congress.