| SAN FRANCISCO, March 17
SAN FRANCISCO, March 17 Louisiana, which
received a credit downgrade this week, will sell $189 million in
general obligation bonds next week in another light issuance
week for the U.S. municipal market.
A total of $4.5 billion in U.S. municipal bond and note
sales will be offered next week, due to the approaching tax
deadline and this week's Federal Reserve rate hike, according to
Municipal Market Data, a Thomson Reuters unit.
The Fed on Wednesday raised the target overnight interest
rate by 25 basis points to a range of 0.75 percent to 1.00
percent, a move spurred by steady economic growth.
The rate hike, the second in three months, was expected and
essentially fully priced in prior to the meeting, according to a
report by Barclays on Friday.
Investors expect the next hike will not happen until later
summer or early fall of this year, Barclays' analysts said.
Also on Wednesday, credit ratings agency S&P Global lowered
its long-term rating to AA- from AA on Louisiana's general
obligation bonds outstanding due to weak revenue collections
from both individuals and businesses from a prolonged
contraction in the oil and gas industry.
"Without meaningful, long-term structural tax changes that
could carry significant implementation risk, there is a
one-in-three chance we could lower the ratings," S&P Global
"We could revise the outlook to stable if the legislature
takes meaningful measures to align revenue expectations with
recurring expenditures to support future budgetary performance
and fiscal stability while rebuilding reserves to a level we
consider good," it said.
(Reporting by Rory Carroll; Editing by James Dalgleish)