From staff reports OKLAHOMA CITY – Moody’s, the bond credit rating service, upgraded the state’s credit rating to Aa1 from Aa2, State Treasurer Todd Russ announced.
“This upgrade, to the second highest possible rating, is a recognition of the state’s strong financial position, low debt burden, and continued economic diversification,” he said. Oklahoma’s “robust reserves and responsible budgeting practices” ensure the state remains well-positioned for future development and investment, Russ said.
The rating upgrade is “a reflection of the hard work the state, Governor Stitt and the Legislature have done to build and maintain a stable financial foundation while navigating challenges and continuing to foster economic growth,” he said. Oklahoma “continues its commitment to economic growth and financial stability,” Russ said.
In its press release, Moody’s noted “a long trend of conservative budget management” and various “balance sheet strengths,” in conjunction with extremely low “fixed costs from debt, pensions and retiree healthcare.”
Oklahoma received its last credit upgrade from Moody's in October 2023, and this one “further demonstrates the state's continued improvement and strong economic outlook.” It highlights the state's ongoing commitment to financial stability and growth, reinforcing confidence in Oklahoma’s fiscal future.
“Our new Aa1 rating from Moody's is validation of the conservative fiscal policies we champion in our state,” the governor said. “Fiscal responsibility is a win for every Oklahoman. To set the next generation up for success, we have to make good financial choices now.'
The state was placed on “positive outlook” by three credit rating agencies last year. As noted in the Moody’s press release, “The outlook has been revised to stable from positive in conjunction with the upgrade.”
The state looks forward to continued discussions with S&P Global Ratings and Fitch Ratings, who both have a positive outlook on the state’s credit rating, as they consider resolving the credit outlook in the near term, Russ said.
The recent upgrade “will positively impact the upcoming bond issue by the Oklahoma Development Finance Authority, with additional savings extending to certain colleges and universities,” the treasurer said. The upgrade “will also benefit all future bond issues by ODFA, as well as the Oklahoma Capitol Improvement Authority,” the state’s largest issuer of tax-backed debt.