(The Center Square) – Updated top bond ratings from all of the three major agencies have been obtained within the last week for North Carolina, the state treasurer confirms.
S&P and Fitch are the latest, each having given issuance on Friday. A day earlier, Moody’s assigned a AAA rating making the Tarheel State one of 14 with AAA across the board. For context, the U.S. government’s latest marks are less at AA+ for S&P (August) and Fitch (August), and Aa1 for Moody’s (May).
Taxpayers are saved money on allocations to state services such as education or infrastructure when debt can be financed at the lowest possible interest rates.
“It is not by accident that North Carolina is continually recognized for its fiscal management,” first-term Republican Treasurer Brad Briner said. “The Legislature put us on a path to financial success, and work done by my team and others in state government have effectively managed that money in a transparent and prudent way.”
S&P said the state’s rating reflects “strong economic growth, ability to manage revenue to support expenditure mandates, well-defined financial management policies, and commitment to maintaining balanced biennial budgets and very strong reserves.”
Fitch said the “rainy day fund and other reserves provide a robust source of financial flexibility.”
At the 2010 midterms, Republicans won majorities in both chambers of the General Assembly for the first time in 140 years and started enacting legislation to change the budget deficit that ranged between $800 million and $1.2 billion. In less than 15 years, the turnaround was roughly $6 billion to a surplus of $5 billion prior to Hurricane Helene last fall.
Some state employees, in fact, in May 2009 were required to take furloughs and salary reductions because of a national recession at the outset of the Obama administration. Only federal government shutdowns and the COVID-19 pandemic impacting federally funded programs have caused state workers to endure such interruptions since.
Briner and his staff serve as chief financial officer and sole fiduciary for the state, handling oversight of public fund investments, administering state debt, oversight of financial activities for local governments, and management of banking operations.
Other states as of this month with AAA from all three agencies are Delaware, Florida, Georgia, Indiana, Iowa, Minnesota, Missouri, Ohio, South Dakota, Tennessee, Texas, Utah and Virginia.
