Moody’s downgrades outlook for Nevada’s finances

Moody’s Investors Service has downgraded its outlook for Nevada’s finances based on projected slow growth for the state’s casino industry.

“Any substantial improvement in the gaming industry in Nevada remains at least a year away, with the most likely scenario after that being one of slow recovery,” wrote Emily Raimes, an analyst with Moody’s Public Finance Group and co-author of the report.

Moody’s on Tuesday revised its outlook on the state’s debt to “negative” from “stable,” citing uncertainty over how the state will resolve its budget gap.

Nevada is expected to face a $3 billion shortfall for its next budget cycle. The report predicted the shortfall
will be closer to $2 billion since about
$1 billion in existing temporary revenue enhancements could be renewed.