In reaffirming Missouri’s AAA rating, Standard & Poor’s Rating Services wrote that, “Missouri’s record of taking mid-year corrective budget measures has helped make its credit quality resilient to episodes of weaker-than-forecasted economic and revenue performance.”
The agency also noted Missouri’s “demonstrated commitment to repaying its appropriations-backed obligations and the importance of appropriation debt to Missouri’s overall capital bonding structure.”
Moody’s Investors Service noted, “Missouri’s historically conservative financial practices reflect in part the executive’s ability to control allotment of appropriated funds during the course of the year. This allotment power provides the state with a strong tool to react to budget shortfalls.”
Also reaffirming, Fitch Ratings wrote that, “Missouri remains extremely well-positioned to deal with economic downturns, with very strong gap-closing capacity in the form of its control over revenues and spending and a demonstrated willingness to take timely budgetary action.”
Last summer, Gov. Nixon met with analysts at Fitch Ratings, Moody’s Investors Service and Standard & Poor’s in New York to discuss Missouri’s AAA credit rating and his administration’s work to make an historic investment in Missouri’s higher education institutions, veterans homes, state parks and other state facilities with a fiscally responsible bond issuance.
Missouri is one of only a few states with a AAA credit rating from all three ratings agencies, which allows the state to benefit from low interest rates and makes long-term capital investments more affordable. This sends a strong signal to businesses that Missouri is a safe place to invest and saves taxpayers millions of dollars in interest annually.
Missouri’s AAA rating has now been reaffirmed 25 times since Gov. Nixon took office in 2009. Missouri’s strong record of fiscal management stands in contrast to the fiscal challenges seen in other states, a number of which have been downgraded over the past several years including Illinois, Kansas, New Jersey and most recently Alaska.