Moody's upgrades state's credit rating following income tax increase

The shift on tax policy this week by Kansas lawmakers have improved the state's credit rating.
 
Moody's Investors Service announced Friday it upgraded Kansas from negative to stable, noting in its report that additional revenues will "reduce the state's fiscal problems to more manageable dimensions that are consistent with similarly rated states." It assessed Kansas as a slow-growing state with above-average long-term liabilities.
 
Moody's called the Legislature's move in repealing Brownback's 2012 tax cuts a "major step forward" for Kansas.
 
The report goes on to say that further upgrades to the state's credit rating could come from improved pension funding and stronger economic growth.