Gov. Jay Nixon today announced the State of Missouri’s AAA credit rating has been reaffirmed by rating agencies.
“Year after year, our bi-partisan work to maintain a balanced budget and make smart investments pays off as Missouri’s AAA credit rating is reaffirmed,” Gov. Nixon said. “The dividends from these efforts come back to Missouri taxpayers in the form of continued low interest rates and reduced principal, which will save millions in the years ahead.”
In reaffirming Missouri’s AAA rating, Standard & Poor's Rating Services wrote that “debt payments are a first-priority budget item in terms of state budgeting” and that “the state’s track record regarding its budget management [i]s especially strong.” Standard & Poor’s also noted that “Missouri’s record of taking mid-year corrective budget measures has helped make its credit quality resilient to episodes of weaker than forecasted economic and revenue performance.”
Also reaffirming, Fitch Ratings noted Missouri’s “long record of conservative operations” and consistent “willingness and ability to support fiscal balance, even after incorporating recent tax changes and a revenue shortfall in 2014.”
Moody’s Investors Service noted that Missouri’s rating is based on “its history of above-average reserve levels, solid fiscal management controls and moderate debt burden.” Moody’s added that the “constitution provides strong executive powers to respond to revenue shortfalls” and praised “Missouri’s judicious approach to debt.”
Missouri is one of only a few states with a AAA credit rating from all three ratings agencies, which allows the state to benefit from low interest rates and makes long-term capital investments more affordable. This sends a strong signal to businesses that Missouri is a safe place to invest and saves taxpayers millions of dollars in interest annually.