Senate Appropriations Committee Chair Scott Martin (R-Lancaster) expressed approval following Moody’s Investor Services’ decision to upgrade Pennsylvania’s credit rating to Aa2. The improvement reflects the state’s strong budget reserves and careful financial management.
This marks the fourth significant enhancement in Pennsylvania’s financial outlook over the past 13 months. In September 2023, both Moody’s Investor Services and S&P Global Ratings confirmed the state’s current bond rating while adjusting its financial outlook from “Stable” to “Positive.” Later, in November 2023, Fitch Ratings elevated the bond rating from AA- to AA.
These upgrades contributed to savings of nearly $100 million during a bond sale in December 2023. Despite welcoming the latest upgrade, Martin highlighted that Moody’s shift of Pennsylvania’s financial outlook back from “Positive” to “Stable” signals ongoing challenges for lawmakers and the governor in securing a sustainable, balanced budget.
Moody’s pointed out that consistent adherence to balanced budgets and robust reserves could lead to further credit upgrades. Conversely, continued budget imbalances and reserve depletion might result in downgrades.
“Today’s announcement is another positive step as we continue to work toward achieving responsible, structurally balanced budgets in the years ahead,” said Martin. “At the same time, it serves as a critical reminder of the importance of maintaining the state’s Rainy Day Fund and avoiding the temptation to overspend and create bigger deficits in the future. We have worked very hard to achieve these credit rating upgrades that save taxpayers huge amounts of money, and we owe it to taxpayers to continue to manage their money wisely,” he added.
Contact: Jason Thompson
