2nd rating agency downgrades Ohio’s bond rating

COLUMBUS (AP) — A second major ratings agency has downgraded Ohio’s bond rating, citing the state’s manufacturing woes and tax changes.

Moody’s Investors Service downgraded Ohio’s bond rating on Monday from “Aa1” to “Aa2,” or from the second-highest rating to the third highest.

Last week, Fitch downgraded the state’s bond rating to “AA” from “AA+,” also a drop from the second-highest rating to the third highest.

The downgrades could make it more expensive for Ohio to borrow money, although Gov. Ted Strickland’s budget director says historically low interest rates should enable the state to continue borrowing cheaply.

Moody’s, like Fitch, says Ohio’s heavy reliance on the deteriorating manufacturing industry was a key factor in the rating. Moody’s also cited tax changes that have lowered state revenue.