(The Center Square) – Moody’s, one of the Big 3 in credit lending, on Thursday reaffirmed “North Carolina is one of the strongest states according to nearly every measure.”
It said the economic growth rate “continues to outperform nearly all other states in the region.”
First-term Republican state Treasurer Brad Briner said the state’s upcoming 2025 and 2026 general obligation bonds also have been assigned a Aaa rating, and the state’s upcoming 2025 refunding limited obligation bonds an Aa1.
“Our state has been fiscally prudent in how it spends and saves money,” Treasurer Briner said. “This, once again, highlights what North Carolinians already know – our leaders have put us on a strong financial path and my team at the Department of State Treasurer has made sure to be strong stewards of oversight and management of those funds.”
North Carolina is one of only 14 states with a AAA rating from all three major national bond rating agencies – Moody’s Investors Service, Fitch Ratings, and S&P Global Ratings. Others are Delaware, Florida, Georgia, Indiana, Iowa, Maryland, Minnesota, Missouri, Nebraska, Ohio, South Dakota, Tennessee, Utah, Virginia and Texas.
In general, obtaining the high ratings comes through an economy deemed strong and resilient; significant financial reserves; low leverage; and effective fiscal governance. The latter is not an indication of party affiliation.
For example, Republicans are generally considered the more fiscal hawk, and the 14 states with AAA ratings include Democratic Govs. Matt Meyer in Delaware; Wes Moore in Maryland; Tim Walz in Minnesota and Josh Stein in North Carolina. And, of those, Democratic trifectas – meaning both chambers’ majority party of the respective state’s Legislature are the same as the governor’s office – are in place in Delaware, Maryland and Minnesota.
Similarly, Republican trifectas are in place but AAA ratings by the Big 3 are not in place for Alabama, Arkansas, Idaho, Louisiana, Mississippi, Montana, New Hampshire, Oklahoma, South Carolina, West Virginia and Wyoming.
