Washington State maintains Moody’s top Aaa credit rating based on its strong financial standing as economy fully reopens
After the State Finance Committee met Wednesday to authorize the issuance of new bonds, Committee Chair and State Treasurer Mike Pellicciotti received confirmation that Washington has maintained its strong credit ratings as it prepares to sell approximately $600 million of Various Purpose General Obligation Bonds, $93 million of General Obligation Bonds, and $40 million of Motor Vehicle Fuel Tax GO bonds later this month.
Moody’s Investors Service issued the highest possible rating of Aaa in their most recent rating of the state. Similarly, Fitch maintained their impressive AA+ rating of the state in a report issued yesterday. S&P also maintained their AA+ rating on Wednesday.
“Working through our state’s financial challenges during the economic recession has had many challenges, but yesterday’s renewed credit ratings reaffirms Washington’s strong financial position and impressive economic recovery that will help our office lock-in extremely low interest rates as we finance essential state and community projects,” State Treasurer Pellicciotti said.
As committee chair, Pellicciotti convened the State Finance Committee Wednesday, which includes Governor Inslee and Lieutenant Governor Heck as members, to authorize the Treasurer’s Office to issue bonds in connection with the state’s recently enacted capital and transportation budgets and also to authorize the refinancing of outstanding bonds for debt service savings, as the situation allows.
Washington’s exceptionally strong economic fundamentals and strong fiscal governance practices play into Moody’s most recent rating, according to the report released Wednesday which called attention to how Washington has been able to maintain strong reserves despite the recent health and economic crisis, as a result of better-than-expected revenue performance in fiscal year 2021.
“I want to thank our office’s debt management team and their partnership in past weeks with the Governor’s budget office and transportation department as we presented our state’s economic data to the credit rating agencies,” said Pellicciotti. “I also appreciate legislative leaders for their work with our office during the last session to ensure responsible budgeting, as today’s strong credit ratings show that Washington is ahead of most other states in our economic recovery.”
State Treasurer Pellicciotti is working to manage the state’s long-term debt and create tax savings when possible. Last authorizing a state debt refinancing in April, when the Treasurer’s Office saved Washingtonians $112 million in future debt costs — the highest amount of savings on a percentage basis from a refinancing by the Treasurer’s Office in at least 35 years, when records were first kept.