Wall Street Boosts States’ Credit Scores as Recession Worries Cloud Outlook – Bloomberg

The better state ratings are due in part to the positive effect of federal pandemic aid, which some states used for one-time expenses while others set cash aside for the future. State treasuries also saw an influx of tax revenue from residents — bolstered by US stimulus money sent to individuals — who spent on services at home at the height of the pandemic, and on travel after Covid lockdowns were eased. Still, a slowdown in the US economy this year is causing concern that states can no longer expect a cash haul.