Minnesota's bond ratings are a measure of the state's overall financial position. Independent rating services such as Moody’s, Standard & Poor’s, and Fitch provide evaluations based on financial condition, financial management, the economy, debt management and pension liabilities, and demographic factors.
Bond ratings are important as they measure the credit risk to the investors and affect the interest rates of the bonds. When Minnesota has a higher bond rating, it indicates to investors that we are a safe investment risk and they will accept a lower rate of return. This translates into lower interest rates for the state and reduces our cost of borrowing.
Minnesota's bond ratings on its General Obligation Bonds remained steady until 2011 when two rating agencies, Standard & Poor's and Fitch, downgraded the State's rating. Bond ratings have seen improvements in recent years with an increase in the Fitch rating to AAA in 2016 and Standard & Poor's rating increasing to AAA in 2018.
This document (.xlsx) provides the indicator data in table format.