- Associated Press - Tuesday, July 26, 2016

JUNEAU, Alaska (AP) - Alaska’s credit rating has taken another hit in the face of a multibillion-dollar budget deficit that state officials have yet to close.

The downgrade by Moody’s Investors Service marked the second time this year that the agency has lowered the state’s credit rating.

Two other ratings agencies, Fitch Ratings and Standard & Poor’s Ratings Services, also have lowered Alaska’s credit rating.

In a statement, Gov. Bill Walker called the latest downgrade concerning but not surprising, noting that Moody’s cited the state’s “political inability” to address the deficit.

Walker proposed new taxes and tax increases and use of Alaska Permanent Fund earnings to help pay for state government. The tax pieces failed to get traction, and the permanent fund bill stalled in the gridlocked House.

State lawmakers recently ended their second special session this year without resolution on a fiscal plan.

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