Pennsylvania’s Credit Rating Upgraded to ‘AA’ Under Governor Shapiro’s Administration

Pennsylvania CapitolCredit: Commonwealth Media Services

PENNSYLVANIA — Governor Josh Shapiro announced this week that Fitch Ratings has upgraded the state’s credit rating from ‘AA-’ to ‘AA’. The upgrade builds on positive credit rating outlooks from Moody’s and S&P’s Global Ratings in September, reflecting the state’s growing economy, balanced 2023-24 budget, and responsible financial management by the Shapiro Administration.

The credit rating upgrade was attributed to Pennsylvania’s “recent use of revenue surpluses to build its reserves to historical highs” and Fitch’s expectation of maintaining substantial reserves in the near term. Fitch also recognized Pennsylvania’s improved operating performance, low long-term liability burden, and flexibility to manage spending pressures, which offset modest baseline revenue growth and a historically contentious decision-making environment.

Governor Shapiro praised the affirmation from Fitch Ratings, stating, “Fitch Ratings becomes the third credit rating agency since September to affirm that our Commonwealth is on sound financial footing thanks to our commonsense investments and responsible budgetary practices – creating opportunity for Pennsylvanians and continuing to set Pennsylvania up for success.”

Shapiro further emphasized his administration’s commitment to collaborative leadership, stating, “My Administration will continue to work with leaders in both parties to make smart investments that responsibly manage taxpayer funds while strengthening Pennsylvania schools and businesses, creating safer communities, and supporting our law enforcement and first responders as we build an economy that works for all.”

Secretary of the Budget Uri Monson echoed these sentiments, highlighting the state’s fiscal trajectory. “With our third positive affirmation in the last three months that Pennsylvania is on the path for economic and financial success, it’s clear that our responsible investments are working to keep the Commonwealth on a sound fiscal trajectory while supporting Pennsylvania families,” said Monson.

In addition to the credit rating upgrade, Pennsylvania’s fiscal management has recently been recognized by the Government Finance Officers Association, which awarded the Commonwealth the Distinguished Budget Presentation Award for the Annual Budget for fiscal year 2023-24 and the Certificate of Achievement for Excellence in Financial Reporting.

The press release issued by Fitch Ratings can be found here. A chart of Pennsylvania’s ratings history can be found here.

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