On Tuesday, Pennsylvania Gov. Josh Shapiro announced Fitch Ratings had upgraded the state’s credit rating from “AA-“ to “AA.”
The upgrades were a result of “recent use of revenue surpluses to build its reserves to historical highs” and expectations that substantial reserves will be maintained in the near term. The announcement comes after similar upgrades by Moody’s and S&P Global Ratings. Fitch’s assessment found that the state deserve the upgrade thanks to “improved operating performance, as well as a low long-term liability burden and broad flexibility to manage spending pressures, which offset modest baseline revenue growth and a historically contentious decision-making environment.”
“Fitch Ratings becomes the third credit rating agency since September to affirm that our Commonwealth is on sound financial footing thanks to our commonsense investments and responsible budgetary practices – creating opportunity for Pennsylvanians and continuing to set Pennsylvania up for success,” Shapiro said.
In September, Moody’s reaffirmed Pennsylvania’s Aa3 issuer credit rating and upgraded the state’s rating outlook from stable to positive. That same month, S&P Global Ratings also improved the state’s outlook from stable to positive and reaffirmed it’s a+ long-term rating.
“This is another clear indication that Pennsylvania is on the right track in terms of how we are managing taxpayer dollars, as well as the importance of continuing to work toward a budget that meets the needs of our communities without placing new tax burdens on families and job-creators,” Senate Appropriations Committee Chairman Scott Martin (R-Lancaster) said. “We have a clear roadmap on how to address the economic and demographic challenges we face in the years ahead. The key is having the courage to follow it by resisting calls for new programs and services that taxpayers cannot afford a few years from now.”