Haslam mulls possible credit rating drop

NASHVILLE, Tenn. (AP) - Gov. Bill Haslam says state officials are discussing the impact of a lowered credit rating if the U.S. government's credit rating is downgraded.

The federal government reached its borrowing limit in May and officials say it will default on its debt if the limit is not raised by Aug. 2. If that happens, Moody's Investors Service warned earlier this week that it probably will lower the AAA credit ratings of 5 states, including Tennessee.

A AAA rating is the highest for debt and tells investors an institutional borrower presents a minimal credit risk.

Haslam, a Republican, told reporters Wednesday he's not overly concerned because Tennessee is in "maybe 1 of the two or three best financial shapes of any state out there."

Meanwhile, Tennessee House Democrats scheduled a press conference on Thursday to discuss tax relief legislation for state residents.

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