Fitch: 2016 U.S. Public Finance Outlook Stable, Long-term Challenges Persist

NEW YORK--(BUSINESS WIRE)-- The 2016 U.S. Public Finance Outlook is Stable, reflecting steady economic growth, though fiscal, economic and regulatory pressures remain, according to Fitch Ratings' 2016 U.S. Public Finance Outlook Compendium.

"For the first time since 2008, all Fitch's U.S. state ratings have a Stable Outlook. We expect stable credit trends for states in 2016, though revenue forecasts remain cautious on slow economic growth," said Jessalynn Moro, Managing Director of U.S. Public Finance Group.

"While sustained low energy prices positively affect the U.S. economy, they also weaken revenue prospects for energy-dependent states."

U.S. local governments are also Stable; however pension payments continue to pressure some local governments.

Fitch is maintaining the Negative Sector Outlook for the U.S. nonprofit hospitals and healthcare systems. Reimbursement levels continue to be constrained due to increased penalties, growth in risk-based reimbursement models, and anticipated cuts to Medicare. Growing consumerism, meager rate increases and deferred impacts from the Affordable Care Act are additional long-term pressures.

For more information, a special report titled '2016 US Public Finance Outlook Compendium' is available on the Fitch Ratings web site at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

2016 U.S. Public Finance Outlooks

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875461

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160106006509/en/

Fitch Ratings
Jessalynn Moro
Managing Director
+1-212-908-0608
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
[email protected]

Source: Fitch Ratings

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