[ST. PAUL, MN] – Governor Tim Walz today announced Fitch has affirmed its AAA bond rating for Minnesota, following a similar affirmation by Standard & Poor’s and an upgrade to AAA by Moody’s last week.

“Minnesota has once again received a AAA bond rating cementing the success of our economy even while there continues to be economic uncertainty in the global marketplace,” said Governor Walz. “Careful fiscal management, a diverse economy, record low unemployment, and strong financial reserves has put Minnesota in a strong financial position resulting in AAA bond ratings from all three major rating agencies.”

“This is the first time since 2003 that Minnesota has received top scores from all three rating agencies, reflecting the strength of Minnesota’s economy and sound fiscal management,” said Minnesota Management and Budget Commissioner Jim Schowalter. “These ratings show confidence in Minnesota at a time marked by uncertainty in markets as a whole.”

In confirming Minnesota’s AAA rating, Fitch stated, “Minnesota's 'AAA' IDR and GO bond ratings reflect the state's solid and broad-based economy, highly educated workforce, expanding population and a revenue structure well-designed to capture economic growth. The ratings also reflect a low long-term liability burden and strong control over revenues and spending that, in conjunction with a sophisticated approach to reserve funding, leaves Minnesota well positioned to manage through economic cycles while maintaining a high level of financial flexibility.”

When upgrading Minnesota’s rating to AAA from Aa1 last week, Moody’s issued a statement that reads, “The State of Minnesota…ranks among the strongest US states in high per capita income compared to the cost of living, robust financial reserves, and low leverage and fixed costs. The state has demonstrated improvements in fiscal governance including implementing relatively conservative and timely budgets, building up very high reserves, contributing to pensions at healthy levels that prevent growth in liabilities and refilling its unemployment trust fund after depleting it during the pandemic.”

In affirming Minnesota’s AAA rating, Standard & Poor’s cited the state’s deep and diverse economy, history of strong financial results, moderate debt levels, and ability to raise revenues and reduce or defer expenditures to maintain a balanced state budget.

High bond ratings help keep the cost of borrowing for future investments low.

MMB is currently scheduled to sell $591,270,000 in General Obligation State Bonds on Tuesday, Aug. 9, 2022. More information is available on the agency’s website.