Madison – Today, for the first time since 1973, Moody’s Investors Service upgraded the state of Wisconsin’s General Obligation rating to Aa1, up from Aa2.
“Since taking office in 2011, we focused on fiscal responsibility and our state’s finances have significantly improved as a result,” Governor Walker said. “The upgrade in rating reflects our fiscal stability driven by bold reforms and accountable stewardship of the taxpayer’s dollar. Moody’s decision to upgrade our rating, for the first time since 1973, shows that Wisconsin is working.”
According to Moody’s report:
- Moody’s upgrade reflects the reserves and other balances that the State has maintained since 2011.
- Moody’s upgrade is continuation of their positive view of Wisconsin, which started with the positive rating outlook assigned in November 2014.
- Moody’s upgrade reflects the proven fiscal benefits of the state’s fully funded pensions when many other states are experiencing stress from rising costs and heavy liabilities associated with unfunded liabilities
With the upgrade, the State is expected to realize a reduction in its capital costs/interest rates on borrowings. The amount of such savings will depend on market conditions at the time of borrowing.
A copy of the full Moody’s report can be viewed here.