Vermont could have to spend more money when it borrows money. That's because the state's bond rating has been downgraded.

It's now no longer at the top rating but is still the second-highest.

Thursday, Gov. Phil Scott said the state has done a good job of managing its budget and funds but the ratings agencies were concerned about the state's population.

"They like what they see. But they keep going back to-- it's your demographics. That's your problem. You need more people in Vermont. And that's why we've taken a lot of the steps that we have," said Scott, R-Vermont.

One of those steps is the effort to bring more people to Vermont, especially young people.

The governor says he believes with more work on that front, they can bring the state's credit rating back up to the top.

He said it was too early to tell how much more money Vermont will have to pay to borrow, thanks to the downgrade.