(The Center Square) – North Carolina is one of the strongest states when it comes to bond ratings, Moody’s says.
And that is despite a “history of late state budgets, a long-running campaign of tax cuts that could reduce revenues in future year’s and above-average exposure to climate risk,” says a release from first-term Republican state Treasurer Brad Briner.
Moody’s, one of the big three in credit ratings along with S&P Global Ratings and the Fitch Group, reaffirmed AAA for the state on general obligation bonds. Appropriation bonds are rated Aa1 and GARVEEs are rated Aa3. GARVEE is the acronym for Grant Anticipation Revenue Vehicles.
The state’s Build NC bonds, or limited obligation has a rating of Aa1 with proposed par amount of $300 million. The GARVEE bonds have a proposed par amount of $475 million, the release says. Both bonds are for transportation projects.
“This stable outlook anticipates that economic outperformance and good governance will assure that North Carolina retains a very strong financial position with low leverage,” Moody’s said.
North Carolina is 11th in lowest leverage and possesses $25 billion in reserves, the rating agency said.
Briner’s office said as of 2024, only 14 states have AAA bond ratings.
