(The Center Square) – Moody’s Investors Service, one of the Big 3 in credit rating, on Wednesday reaffirmed North Carolina is one of the strongest states in financial position and gave it the highest Aaa rating.
The rating for S&P Global Ratings is AAA, and for Fitch Ratings is AAA, according to each company's publication. S&P released its most recent rating this past Friday.
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.
In an emailed statement to The Center Square, first-term Republican state Treasurer Brad Briner said, “North Carolina is consistently recognized for its excellence in fiscal management. Getting an Aaa bond rating may sound like a financial mark meant for experts, but it matters to every North Carolinian. It reflects confidence in how we manage public money and can help the state borrow at lower interest costs. That means more of our tax dollars can go toward the schools, roads and other priorities that support our communities.”
On the Moody’s report specific to the state, the firm said, “The combination of organic revenue growth, large accumulated reserves and low fixed costs give the state substantial capacity to absorb temporary revenue weakness or expenditure overruns without impairing core services.”
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, according to The Center Square research, are Delaware, Florida, Georgia, Indiana, Iowa, Minnesota, Missouri, Ohio, South Dakota, Tennessee, Texas, Utah and Virginia.
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.