December 22, 2009

Statement from Gov. Nixon on Standard & Poor's report reaffirming AAA bond rating for Missouri

JEFFERSON CITY, Mo. - Gov. Jay Nixon today released the following statement on the release of a report by rating service Standard & Poor's, which again gives Missouri the highest credit rating possible for its general obligation debt.

"Just like Missouri families who work hard to make sure that the checkbook balances at the end of the month, I've made sound fiscal management of this state's budget a top priority of my administration. The fact that yet another rating agency has given Missouri the highest possible bond rating is even more proof that our budget is being handled conservatively and with the greatest level of accountability for the future.  We have a vibrant and diverse economic base, we've made tough cuts and held the line on taxes, and we've been responsible with debt. These traits give us a strong foundation for growth, and a good reason for financial industry analysts like Standard & Poor's to place a high level of trust in Missouri's stable financial outlook in the months ahead."

Standard & Poor's issued the report from its annual review of Missouri on Dec. 21.  The report graded Missouri with a stable outlook, stating the expectation that, "Missouri will continue to maintain its high level of reserves and good financial management." The Standard & Poor's review cited four main factors for its assessment:

• Low debt burden;
• A strong and diverse economic base;
• Good financial management that is required by state law to make midyear budget cuts, as needed, to preserve balanced operations; and
• Strong reserves in the form of a budget reserve fund that can only be accessed under certain circumstances.

Missouri's general obligation bonds were given a AAA rating by Fitch's Ratings in September 2009.