Pa. credit rating receives more positive affirmation

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Pennsylvania‘s credit rating has been upgraded by Fitch Ratings, marking the third positive affirmation of the state’s budgetary management since September. 

Fitch improved Pennsylvania’s credit rating from AA- to AA. The upgrade builds on positive credit ratings outlooks from Moody’s and S&P Global last September. 

“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,” Gov. Josh Shapiro said in a statement.

“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.”

According to Fitch, Pennsylvania’s credit rating was upgraded because of “recent use of revenue surpluses to build its reserves to historical highs” and Fitch’s belief that substantial reserves will be maintained.

Fitch’s assessment also found that Pennsylvania deserved the credit rating upgrade due to “improved operating performance, as well as a low long-term liability burden and broad flexibility to manage spending pressures, which offset modest baseline revenue growth and a historically contentious decision-making environment.”

Secretary of the Budget Uri Morrison said the third positive affirmation in the last three months proves that Pennsylvania is on the path to economic and financial success.

In September Moody’s reaffirmed Pennsylvania’s Aa3 issuer credit rating and upgraded the Commonwealth’s rating outlook to positive from stable. Later that month, S&P Global Ratings also improved the state’s outlook to ‘positive’ from stable and affirmed its A+ long-term rating.

Pennsylvania has been awarded the Distinguished Budget Presentation Award for the Annual Budget for fiscal year 2023-24 and the Certificate of Achievement for Excellence in Financial Reporting, which is the highest form of recognition in governmental accounting and financial reporting, from the Government Finance Officers Association.