Minnesota retains highest possible credit rating for fifth year

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(The Center Square) – Minnesota has earned the highest possible credit rating for the fifth consecutive year.

This comes from Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, which each gave the North Star State a “stable outlook.”

“Even while federal actions create national economic uncertainty, Minnesota’s economic stability and sound fiscal management maintain the confidence of America’s top rating agencies,” said Gov. Tim Walz, a Democrat. “Making smart fiscal decisions is a hallmark of how we’ve governed. Balancing our state budget, reducing the structural imbalance, maintaining ample reserves, and prioritizing investments in Minnesotans have made this state the best place to live, work, and raise a family.”

Minnesota received a AAA rating, which is the highest credit rating a government or other borrower can receive from a major credit-rating agency.

For Minnesota, it means the rating agencies view the state as having an extremely strong ability to repay its debt and a very low risk of default. This lowers the cost of borrowing for the state.

“Minnesota’s finances have shown significant resilience through economic downturns, and the state has demonstrated a strong commitment to bolstering its reserves during recoveries,” said Fitch Ratings. “Fitch expects the state’s economic trajectory to support strong revenue growth prospects.”

Fitch Ratings also gave a AAA rating to four of the state’s general obligation bonds.

Minnesota was one of 14 states to receive the AAA rating.

According to Minnesota Management and Budget Commissioner Erin Campbell, Walz himself sat down with the rating agencies and discussed “what makes Minnesota a truly exceptional state.”

“We have worked hard to create responsible budgets that maintain our state’s fiscal integrity while also making strategic investments and public policy decisions that will keep Minnesota competitive,” Campbell added. “I am grateful for the leadership the governor and legislative leaders have demonstrated to make this a reality.”