Fitch Ratings, one of the leading credit rating agencies in the United States, has announced that it will upgrade Pennsylvania’s bond rating. The decision comes as a result of the state’s sound financial management and strong budgetary reserves.
According to Senate Appropriations Committee Chairman Scott Martin, the upgrade from AA- to AA is a testament to Pennsylvania’s commitment to fiscal responsibility. This is the same rating that the state held back in 2014. Martin believes that this upgrade will lead to lower debt service costs for the state, ultimately resulting in savings of millions of dollars for taxpayers.
In its announcement, Fitch Ratings specifically pointed out the strong budgetary reserves and management of spending pressures as the key factors behind the upgrade. However, the agency also warned that drawing down these reserves could have negative consequences in the future.
Martin highlighted the efforts of Senate Republicans in building the state’s Rainy Day Fund to historic highs and resisting new recurring spending that is not supported by long-term revenue projections. He sees this upgrade as a validation of their approach to managing taxpayer dollars.
“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,” Martin said.
He emphasized the need to have the courage to follow a clear roadmap that addresses the economic and demographic challenges the state faces in the coming years. This includes resisting calls for new programs and services that taxpayers cannot afford in the future.
This rating upgrade from Fitch Ratings follows similar moves by other major credit rating agencies. In September, Moody’s Investor Services and S&P Global Ratings affirmed Pennsylvania’s current bond rating and revised the state’s financial outlook from “Stable” to “Positive.”
Pennsylvania’s commitment to sound fiscal management and strong budgetary reserves has not gone unnoticed. With these upgrades, the state is well-positioned to continue its responsible financial practices and provide savings for its taxpayers.
For media inquiries, please contact Jason Thompson.
To learn more, click on this link: https://senatorscottmartinpa.com/2023/11/28/citing-sound-fiscal-management-fitch-upgrades-pennsylvanias-bond-rating/
