North Carolina Upholds Coveted AAA Bond Rating
Governor Pat McCrory announced today that North Carolina received an AAA bond rating from all three major bond rating agencies, the highest rating possible. The ratings are a result of sound fiscal management and prospects for continued economic growth under the governor’s leadership. North Carolina is one of only nine states to possess this pristine credit rating.
“One of the top priorities of my administration is to ensure good stewardship of taxpayer dollars,” said Governor McCrory. “These ratings are a testament to our responsible and conservative fiscal practices, sound budgeting and prospects for future growth.”
All three rating agencies attribute North Carolina’s strong bond rating and stable outlook to responsible financial management, a diverse and growing economy and strong population growth.
According to Fitch Ratings, “North Carolina’s AAA general obligation bond rating reflects its moderate liabilities, conservative financial operations and long-term prospects for continued economic expansion and diversification.”
Under Governor McCrory’s leadership, North Carolina’s economy is rebounding and growing stronger. Since Governor McCrory took office in January of 2013, North Carolina has witnessed the net creation of more than 260,000 private-sector jobs.
“North Carolina’s AAA general obligation bond rating reflects the state’s long history of conservative fiscal practices, an economy that continues to recover and expand, and declining debt levels,” said the Moody’s report.
As part of the governor’s dedication to responsible fiscal management, he led the reform of North Carolina’s broken unemployment system allowing the state to pay off a $2.8 billion unemployment insurance debt to the federal government five years ahead of schedule. Additionally, the budget signed by Governor McCrory strengthened and enhanced the state’s rainy day fund to more than $1 billion, the largest in state’s history.
“The stable outlook on the bonds reflects our expectation that the state's economic trends will continue to reflect improvement and growth above national levels,” the Standard and Poor’s report affirms. “The state’s high housing affordability and favorable climate have helped spur strong domestic in-migration, which has been good for population and economic growth.”
North Carolina’s expanding economy and quality of life has positioned it as one of the fastest growing states in the nation. North Carolina is growing at a rate of 281 people per day and surpassed Michigan in 2015 to become the ninth most populous state in the nation.