S&P raises to AA+, highest since 1966

LITTLE ROCK, AR - S&P Global Ratings and Moody’s Ratings both released their outlook on the State of Arkansas’ creditworthiness. S&P raised its long-term rating on state general obligation bonds to AA+ - the highest since 1966 - and affirmed the state’s stable outlook. Moody’s affirmed Arkansas’ Aa1 issuer rating.

These strong ratings from two of the world’s leading credit rating agencies emphasize Arkansas’ steady budget management and make it more affordable for the State to issue bonds.
 
“Good leadership matters, and when Arkansas is able to cut taxes, invest in priorities, and grow our reserve funds - all at the same time - it just proves that our conservative economic agenda is working,” said Governor Sanders. “Today’s announcement is more than just a seal of approval on our financial discipline; it also shows potential investors that we are an excellent state for their business.”
 
“In our conversations with both S&P and Moody’s we pointed to the strength of the state’s balance sheet, including the addition of the $1 billion Arkansas Reserve Fund, Governor Sander’s leadership in cutting taxes by more than 20% in just two years, our growing steel and lithium industries, and the booming metropolitan area in Northwest Arkansas,” said Department of Finance and Administration Secretary Jim Hudson. “S&P’s and Moody’s ratings tell us that we are on the right track in Arkansas.”
 
S&P and Moody’s favorable ratings will have an immediate benefit to the state in connection with a planned $25 million bond issuance through the Arkansas Natural Resources Commission for irrigation, water, and wastewater projects.      
 
A full list of state credit ratings from S&P Global is available here.
 
A full list of state credit ratings from Moody’s is here.