
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 17, 1991                   TAG: 9102180340
SECTION: EDITORIAL                    PAGE: C/2   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

CREDIT WILDER

GOV. WILDER has taken more than a little flak for his proposals to keep the state's budget in balance. Since legislators seem determined to deny the governor a total victory in the budget wars, it remains to be seen if some of his more controversial recommendations will survive this feisty General Assembly session.

Fair to say, it's also uncertain if some of Wilder's bookkeeping gimmicks and one-time savings will prove, in the long run, to be sound fiscal policy. In some areas, he's risking disinvestment in future prosperity, and saving money at the cost of imposing burdens on future taxpayers.

All that noted, it's still worth observing that Wilder's budget-balancing efforts sit well with the nation's bonding industry. Standard & Poor's, one of the most influential financial-rating houses, has just reaffirmed Virginia's AAA rating, the tops it has to offer. The Wilder administration says it expects also to maintain its top rating with Moody's financial-rating service.

The ratings stand, essentially, as a vote of confidence that the state can meet its financial obligations on outstanding debt - despite its current revenue shortfall of nearly $2.2 billion.

Because of the recession now affecting all states, S&P downgraded Virginia's overall economic outlook from "stable" to "negative." But it said Virginia deserves its gilt-edged bond rating nonetheless because of the state's fundamentally sound credit, its low debt burden, and an economy that "remains strong and well-diversified despite the current slowdown."

Virginia has long been one of the few states in the nation making the AAA grade. At a time when other states' budget problems are causing the financial-rating houses to put them on "credit watch" (if not actually to lower their ratings), it's nice that Virginia's ability to manage its financial affairs is still highly regarded. Some of the credit has to go to Wilder.

by CNB