By Carol Hazard, Times-Dispatch Staff Writer

Virginia is the second-best state in the country for doing business, according to a CNBC ranking released yesterday.

Texas succeeded Virginia as No. 1 in the cable financial news channel's list of America's Top States for Business.

Utah, Idaho and Colorado took third, fourth and fifth, respectively, according to the network.

The survey, in its second year, ranks states according to 10 broad categories, including the cost of doing business, the strength of the economy, the cost of living and business friendliness. States receive points based on 40 measures of competitiveness.

The highest single category ranking for Virginia was second in business friendliness. Its decline in the overall ratings was attributed to a slowdown in economic growth.

The state slipped from the top spot last year, but business proponents aren't complaining.

"We'd prefer to be No. 1, but No. 2 is pretty tall cotton," said Hugh Keogh, president and chief executive officer of the Virginia Chamber of Commerce. "No. 2 out of 50 is outstanding.

"As long as we remain in the top five or top 10, we will remain on the radar screen of industrial prospects around the world."

Gregory H. Wingfield, president and chief executive officer of the Greater Richmond Partnership, said accolades by an objective third party such as CNBC help with recruiting efforts.

"It's a great testimony to the strength of the business climate in the commonwealth," said Wingfield, who was on a business recruiting trip in Germany yesterday.

"Unemployment [in Virginia] is a respectable 3.9 percent, the corporate tax rate is a flat 6 percent and the top individual income-tax rate is 5.75 percent," according to survey results.

The largest private employer in the state is Wal-Mart, followed by last year's top employer, Northrop Grumman Newport News shipyard.