Fitch Ratings, a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA+, citing the state's economy and changing demographics. This change could:

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When a credit rating is downgraded, it typically signals a higher risk to investors, which could make it more expensive for the state to borrow money. This increase in direct costs could happen through higher interest rates on bonds or other debt instruments. Option B is unlikely as private investors may also see the downgrade as a signal of increased risk and may be less likely to invest. Option C is also unlikely as investing in Treasury securities may not be the most profitable or efficient use of the state's funds.

Fitch Ratings, a Credit Rating Agency, Recently Downgraded Vermont's Debt