Kate Marshall Misleads Nevada Voters on Her Credit Downgrade

August 9, 2011

Yesterday, the stock market fell 634 points after America’s credit rating was downgraded Friday by Standard & Poor’s. Although Kate Marshall boasts about preserving Nevada’s “excellent” credit rating on the campaign trail, Nevada experienced a credit downgrade from Standard & Poor’s and Moody’s under her watch. According to the “Accomplishment” section of her campaign website:

“Marshall maintained the state’s excellent AA credit rating even through one of the worst financial crisis our nation has ever experienced, and she has kept debt service reserves well above the six month “best practices” level.”

This intentionally misleads Nevada voters. According to March 2011 reports, Nevada saw credit downgrades similar to President Obama’s downgrade on Friday.

“Nevada’s credit rating was lowered one level by Standard & Poor’s because the firm said the state’s economy is ‘especially vulnerable’ to a slowdown in consumer spending as the U.S. recovers from the recession. “ (Matt Robinson, “Nevada Debt Rating Lowered One Level to AA by Standard & Poor’s,” Bloomberg, 3/10/2011)

“Nevada received its second downgrade of the month Thursday when Moody’s Investors Service dropped its general obligation bonds to Aa2 from Aa1.” (Rich Saskal, “Moody’s Lowers Nevada GOs in State’s Second Drop This Month,” Market News, 3/25/2011)

Why is Kate Marshall bragging about a credit downgrade?

NRCC Comment:

“Nevada voters will realize that Kate Marshall’s record as the state’s top financial officer is defined by high unemployment, severe home foreclosures, and a devastating credit downgrade. Kate Marshall will be nothing more than a rubberstamp for President Obama and Harry Reid’s failed agenda if elected to Congress.” – Tyler Q. Houlton, NRCC Spokesman