[ST. PAUL, MN] – Governor Tim Walz today announced that Minnesota has earned the highest bond rating achievable. This month, Fitch, Moody’s, and Standard & Poor’s have all affirmed the state’s AAA rating.

“This is the second year in a row Minnesota received top bond ratings from all three major rating agencies, confirming our strong economy and financial position,” said Governor Walz. “Our diverse economy, skilled workforce, balanced budgeting, and thoughtful financial management keep Minnesota’s bond ratings among the highest of any state in the nation.”

“Top bond ratings are important because they help reduce the cost of borrowing to make needed improvements across the state,” said Minnesota Management and Budget Deputy Commissioner Erin Campbell. “Minnesota demonstrated during the recent pandemic and period of economic uncertainty that our balanced approach toward spending, healthy reserves, and low long-term debt enable us to be agile and responsive even amid historic challenges.”

In affirming Minnesota’s AAA rating, Fitch stated, “Minnesota's 'AAA' IDR and GO bond ratings reflect the state's steadily-growing 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 historically 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.”

In affirming Minnesota’s AAA rating, Moody’s Investors Service stated, “Minnesota's long-term economic fundamentals remain very strong stemming from low unemployment, high per capita incomes, high workforce participation, high educational attainment, and a diverse mix of industry.”

In affirming Minnesota’s AAA rating, S&P Global stated, “Minnesota's robust management, with regular and comprehensive multiyear revenue forecasting, focus on matching recurring expenditures with recurring revenue, and commitment to maintaining healthy reserve balances, continues to support the state's 'AAA' credit quality.”

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