CHARLESTON, W.Va. - Gov. Joe Manchin today announced that, for the first time in well over a decade, Standard and Poor's Ratings Services has raised its rating on West Virginia's general obligation (GO) debt outstanding to "AA," up from "AA-" based on the state's continued strong financial performance and continued commitment to address its long-term liabilities through this most recent period of national economic weakness.
"This is great news that speaks volumes about the hard work Legislative leaders and my administration have put toward getting West Virginia's financial house in order," Manchin said. "Our state truly is a national leader and we have the results that reflect the responsible approach we've taken toward managing our government."
The higher bond rating means that West Virginia, including local school boards, can obtain money to finance major projects, like infrastructure, at a lower interest rate. 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, said Virgil Helton, Secretary of Revenue.
"The rating change allows West Virginia to use taxpayer money more efficiently," Secretary Helton said. "We will now be able to save money on financial transactions, as a result of lower interest costs, and put that savings toward improved taxpayer benefits."
At the same time Standard and Poor's raised the state's GO debt rating, it also raised its rating of West Virginia's appropriation debt to "AA-" from "A+," and it assigned this "AA-" rating to the West Virginia Economic Development Authority's lease revenue bonds, series 2009 A.
During 2009, only West Virginia and two other states in the United States have received a ratings upgrade from any of the three national rating agencies.
The rating agency said that the state's economic base has provided relative stability during periods of economic downturn, and that the rating was supported by West Virginia's "solid financial management, which has historically taken responsive actions to meet revenue shortfalls and budget conservatively, preserving budgetary balance and a sound financial position."
The agency also said that West Virginia's outlook is stable. "Although the state is now confronting some of the economic challenges related to the national and global recession, it maintains strong financial operations and reserves, is budgeting conservatively, and has additional flexibility to meet these challenges."