7/8/2011
CHARLESTON, W.Va. -Gov. Earl Ray Tomblin today announced that Fitch Ratings has raised its rating on West Virginia's general obligation (GO) debt outstanding to "AA+" from "AA". Fitch also raised its rating on outstanding appropriation-backed debt of the West Virginia Economic Development Authority (EDA) and School Building Authority (SBA) to "AA" from "AA-". Lastly, Fitch has assigned the rating of "AA" to the upcoming EDA lease revenue refunding bonds, 2011 series A. Fitch based these ratings on the "state's consistently positive financial operations, including the expansion of reserves, and an ongoing commitment to reducing long-term liabilities".
"This is the third time, in three consecutive years, one of the rating agencies has recognized the hard work we have been implementing to get, and keep, West Virginia's financial house in order," Gov. Tomblin said. "With all three rating agencies making positive adjustments to West Virginia's portfolio in recent years, our taxpayers will save money as bond issuances to fund major projects will be financed at lower interest rates."
This will positively impact water and waste water projects as well as certain types of economic development ventures. The ratings suggest that the state's bonds are more attractive and stable for investors, which means that West Virginia taxpayers get a better deal on the money the state borrows.
Fitch cited the following reasons for the ratings upgrade:
- West Virginia's now-longstanding efforts to address financial challenges;
- Use of surpluses to build up reserves and reduce pension liabilities;
- West Virginia's maintenance of a diversified economic base through cyclical challenges;
- The state's emergence from the recession with a strong financial position.
In 2009, Standard and Poor's Rating Services raised its ratings on West Virginia general obligation debt outstanding. In 2010, Moody's Investor Service raised its ratings for the state as well.
Contact Information
Jacqueline Proctor
304-558-2000