Fitch reaffirms NC’s Credit Rating

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.