A “big-three” credit rating agency upgraded the commonwealth of Kentucky’s state-level credit rating from AA- to AA — the state’s first ratings bump in 13 years.
New York City-based Fitch Ratings started rating Kentucky in 2014. In a notice to investors released on the 11th, Fitch noted that the state has made material improvements to their fiscal reserves since 2020.
“More disciplined budgeting practices have allowed Kentucky to use surplus revenues to boost state fiscal reserves, increasing its overall financial resilience,” reads the notice to investors. “The upgrade of Kentucky’s Integrated Data Repository also factors in better funding practices related to long-term liabilities, particularly public pension plans.”
The rating measures Kentucky’s ability to pay debts and the overall health of the state economy. The state’s lease appropriation rating was also raised from a AA- to A+.
Gov. Andy Beshear commented on the rating upgrade, calling it a “positive sign.”
“Kentuckians are celebrating today’s news because it proves that this administration has been a good steward of taxpayer dollars; and this is one more positive sign that Kentucky’s economy is booming, and that our fiscal house is in order,” Beshear said in a press release from the governor’s office.