Despite Dems' Whining, Budget Cuts Boost Florida's Outlook at S&P

Standard & Poor's rating service upgraded its fiscal outlook on Florida to stable, citing the state's progress addressing its structural imbalances through aggressive budget cuts.

The Wall Sreet Journal reported that the revised outlook reflects the state's structurally balanced for fiscal-year budget, which has benefited from cost-cutting and higher-than-expected revenue. Florida's economy was among those hit hardest by the housing crisis, which has severely pressured the state budget in recent years.

The state has also replenished much of its reserves after steep declines over the past two years, the Journal said.

S&P still rates the state at AAA, the highest possible credit rating. The stable outlook means S&P is less likely to downgrade the state in the near term.

Continued high foreclosure rates and lower migration to Florida continue to challenge the state, S&P said.