One of the nation’s most prominent credit rating agencies has downgraded its assessment of Washington state’s credit rating. 

S&P Global recently revised its outlook for the state’s general obligation bonds from “positive,” meaning that the rating could be raised, to “stable,” meaning the state’s rating is likely to stay the same, according to a blog post from think tank Washington Research Council. 

“...The state’s budget balancing efforts are expected to be more challenging given the softened revenue outlook driven by an expected deceleration in economic growth and ongoing cost pressures,” S&P Global wrote in its outlook. “In our view, this will likely result in operating pressure necessitating the use of available reserves at a time when we had expected sustained reserve preservation.” 

The state is facing a budget shortfall this year despite passing a slew of new taxes. Despite the downgrade, S&P Global said it still expects the state to take actions necessary to balance revenue with expenditures, noting “The state’s active management practices and forecasting have historically benefited it in tracking potential budgetary pressures, including its most recent stresses, and we view its statutory mechanisms for ensuring budgetary balances in out-years as prudent.”