North Carolina’s financial reputation shines a bit brighter today, as State Treasurer Dale R. Folwell proudly announced the ‘AAA’ bond rating affirmation from S&P Global Ratings for the state’s general obligation bonds. It seems the Tar Heel State’s fiscal discipline is paying off in spades, at least according to the experts at S&P.
In a statement obtained by the North Carolina Department of State Treasurer
, Joe Pezzimenti, a credit analyst at S&P Global Ratings, points to North Carolina’s robust economic growth, adept management of revenues, well-defined financial policies, and a vested interest in maintaining balanced budgets and hefty reserves as key factors for the rating.
Folwell links this top-notch rating directly to the state’s ability to secure loans with the most favorable interest rates, which translates to stronger purchasing power. Crediting the taxpayers and the General Assembly, Folwell embellished the importance of North Carolina’s fiscal prudence. However, it’s also important to note, that North Carolina stands among an elite group of only thirteen states that can boast of an ‘AAA’ rating from all three major national bond rating agencies.
The importance of these ratings cannot be overstated. As they suggest, those holding North Carolina’s bonds can sleep a little more soundly knowing that the state possesses a “low-to-moderate debt burden” and a “well-funded pension system,” as S&P Global put it in their statement. These attributes, along with others like the state’s ability to bounce back from natural disasters by rebuilding reserves, are underlined by S&P as foundations of their decision to maintain the ‘AAA’ rating.
It’s an accolade that speaks volumes about the state’s economic stability. Touted by S&P, the diverse employment sectors in North Carolina and a track record of thoughtful fiscal management, including strategies to maintain a structural budget balance, are reasons for potential investors to look at North Carolina with confidence. The affirmation of an ‘AA+’ rating for appropriation-backed obligations, like Build NC bonds and those by the North Carolina Turnpike Authority, further underscores the strong financial outlook for the state.
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