Twelve US states including economic powerhouses Florida and Texas have credit ratings higher than the US government after Fitch Ratings lowered the sovereign credit grade on Tuesday to AA+. The count was based on whether these states have AAA or equivalent ratings from at least two of the three companies — Moody’s Investors Service, S&P Global Ratings and Fitch.
(Bloomberg) — Twelve US states including economic powerhouses Florida and Texas have credit ratings higher than the US government after Fitch Ratings lowered the sovereign credit grade on Tuesday to AA+. The count was based on whether these states have AAA or equivalent ratings from at least two of the three companies — Moody’s Investors Service, S&P Global Ratings and Fitch.
Eleven states have top-grades from all three companies. While South Carolina has two AAA or equivalent ratings, Ohio and Washington each have one a piece.
“Unlike the Federal government, US states must sign a balanced budget on an annual or bi-annual basis holding them accountable for revenue and expenses,” said James Pruskowski, chief investment officer at 16Rock Asset Management in an email on Wednesday. He added that most US states are single-party majority led, “which goes a long way with reducing political and policy risk.”
–With assistance from Sue Lucas.
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