Fitch reaffirms NC’s Credit Rating

As reported this morning by Triangle Business Journal, Fitch Ratings reaffirmed the State of North Carolina’s strong credit history, issuing an “AA+” rating for a $500 million limited obligation bond that will go to market on February 2nd.

Fitch also affirmed the State’s existing “AA+” rating for appropriation-backed debt ($1.7 billion currently-issued) and “AAA” rating for general obligation debt ($5.3 billion currently-issued). Their report concluded a “stable outlook” for North Carolina’s state-issued debt, given the following observations:

  • Low-to-moderate debt burden
  • Strong debt management practices, which include an affordability planning process
  • Increased reliance on lease appropriation debt
  • Pension funding, strongest among the 50 states
  • Conservative (comparative) financial operations, with capacity for “prompt” balancing action due to the role the Governor serves as budget director
  • Continued maintenance of conservative fiscal and debt management policies
  • Anticipated long-term economic growth and diversity, despite recent recession impact

A Fitch press release discussing their findings can be accessed here.

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