(The Center Square) – North Carolina, following an affirmation on Friday by S&P Global, remains in a top tier for its outstanding general obligation bonds.
S&P kept the state at AAA, said first-term Republican state Treasurer Brad Briner. The state remains at the top level as well with Moody’s (Aaa) and Fitch (AAA). The Tarheel State is one of 14 at the highest level in all three.
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.
“There is a reason that time and again North Carolina receives these top ratings – our leaders are fiscally prudent in their oversight and management of our funds,” said Briner. “This rating affirms that and keeps our state in an excellent position to borrow money for future economic development and growth.”
In assessment, S&P said of the state, “North Carolina’s credit profile reflects our view of the state’s well-defined financial management policies, a commitment to maintaining balanced biennial budgets, preservation of very strong reserves, low-to-moderate debt burden and well-funded pension plans.”
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.
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 triple-A with all three ratings services are Delaware, Florida, Georgia, Indiana, Iowa, Minnesota, Missouri, Ohio, South Dakota, Tennessee, Texas, Utah and Virginia.