From staff reports OKLAHOMA CITY – State elected officials celebrated recently after S&P Global Ratings upgraded the state’s credit rating. S&P Global Ratings raised Oklahoma’s issuer credit rating to ‘AA+’ from ‘AA,’ marking the state’s highest rating in decades.
The agency also upgraded its rating from ‘AA-‘ to ‘AA’ on appropriation-backed debt issued by the Oklahoma Capitol Improvement Authority and the Oklahoma Development Finance Authority.
S&P also assigned an ‘AA’ rating to OCIA’s upcoming $256 million bond issue for the Oklahoma Department of Transportation that is expected to price mid-April.
S&P’s report acknowledges Oklahoma’s efforts to diversify its economy beyond energy, highlighting growth in aerospace, transportation, and renewable energy industries.
The agency also cited the state’s historically conservative budgeting approach and strong financial oversight as key factors in the credit upgrade. With the state’s reserves projected to total over $2 billion and continued economic growth, Oklahoma is well-positioned to maintain financial stability and withstand future economic challenges.
The news was applauded by Gov. Kevin Stitt, Treasurer Todd Russ, Senate President Pro Tempore Lonnie Paxton and House Speaker Kyle Hilbert.
S&P revised the outlook on Oklahoma’s rating to Positive from Stable in July 2023.
The latest upgrade reflects the state’s commitment to responsible financial management, including consistently positive financial results, a dedication to funding pension liabilities, and maintaining high reserve balances to cushion against economic uncertainty.
Oklahoma's credit rating was ‘AA+’ in 2016 before experiencing a downgrade, but through years of disciplined financial management and economic growth the state has regained its strong standing. This return to ‘AA+’ reflects the commitment to responsible budgeting, maintaining healthy reserves, and fostering economic growth, the officials said.