Upgrade restores top rating for Minnesota, reflecting growing economy and fiscal responsibility
ST. PAUL, MN – Top financial analyst
Fitch Ratings announced today that they are upgrading Minnesota’s credit rating to AAA, the highest rating awarded by the analyst. Fitch Ratings had previously downgraded Minnesota’s rating to AA+ in 2011, reflecting years of financial instability in the state.
The following is a statement from Governor Mark Dayton:
"This upgrade, to Fitch’s top credit rating, is a testament to the hardworking Minnesotans and businesses across our state who have led our economic recovery, and to the work our state has done over the past six years to right the fiscal ship."
The following is a statement from Lt. Governor Tina Smith:
“Everyone does better when our state’s economy is on solid ground. Businesses have the certainty they need to expand operations and hire more workers. Minnesota families have better access to good jobs, affordable housing, and the peace of mind they need to invest in their family’s future. This top rating by Fitch is a testament to the fiscal responsibility that has been our guiding light from the beginning of our term. Now we need to keep working, so our economy works for everyone, everywhere in Minnesota, not just those at the top.”
The following is a statement from Management and Budget Commissioner Myron Frans:
“Minnesota’s financial health is in good order. This upgrade from Fitch is a reflection of our work to create a budget that is structurally sound. A budget that balances revenues and spending, ensures our reserves continue to build, and allows us to continue making smart investments in Minnesota’s future.”
This upgrade from Fitch follows an improved rating outlook from Standard & Poor’s last year, from stable to positive, a decision they reaffirmed this year. Moody’s also reaffirmed their Aa1 rating for Minnesota.
Fitch based their upgrade on “Minnesota’s solid and broad-based economy, a revenue structure well designed to capture economic growth, a low liability burden, strong control over revenues and spending” and “a sophisticated approach to reserve funding.” Fitch notes that these factors, along with Minnesota’s financial flexibility and a projected surplus of $729 million over the biennium, has positioned the state well to navigate future fluctuations in the economy.
Today’s news comes as Minnesota prepares for the sale of almost $788 million in general obligation bonds on August 2, 2016.
