State credit ratings

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The table below lists state credit ratings from 2004 to July 2017. Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy.

Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This, in turn, results in lower interest costs, thereby lowering the cost to taxpayers. If a state receives a lower ranking, or its credit rating is downgraded, the cost of borrowing money goes up, which can negatively affect a state's budget and economic growth.

Credit ratings by state

The table below provides the credit ratings for each of the states from 2004 to July 2017. Standard and Poor's grades range from AAA, the highest available, to BBB-, the lowest.

State credit ratings, 2004 to 2017
State	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Alabama	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Alaska	AA	AA+	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA
Arizona	AA	AA	AA	AA-	AA-	AA-	AA-	AA-	AA-	AA	AA	AA	AA	AA
Arkansas	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
California	AA-	AA-	AA-	A	A	A-	A-	A-	A	A+	A+	A+	A	A
Colorado	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-
Connecticut	AA-	AA-	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Delaware	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Florida	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AA+
Georgia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Hawaii	AA+	AA+	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-
Idaho	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA	AA	AA
Illinois	BBB-	BBB	A-	A-	A-	A	A+	A+	A+	AA	AA	AA	AA	AA
Indiana	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AA+	AA+	AA	AA
Iowa	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+
Kansas	AA-	AA-	AA	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+
Kentucky	A+	A+	A+	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-
Louisiana	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	A+	A	A	A	A+
Maine	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA
Maryland	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Massachusetts	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA	AA	AA	AA-
Michigan	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA-	AA	AA	AA+
Minnesota	AA+	AA+	AA+	AA+	AA+	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Mississippi	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Missouri	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Montana	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-
Nebraska	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA+	AA+	AA+
Nevada	AA	AA	AA	AA	AA	AA	AA	AA+	AA+	AA+	AA+	AA+	AA	AA
New Hampshire	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
New Jersey	A-	A	A	A+	AA-	AA-	AA-	AA	AA	AA	AA	AA	AA	AA-
New Mexico	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+
New York	AA+	AA+	AA+	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
North Carolina	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
North Dakota	AA+	AA+	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-
Ohio	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+
Oklahoma	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA	AA	AA
Oregon	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-	AA-	AA-
Pennsylvania	AA-	AA-	AA-	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Rhode Island	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-
South Carolina	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AAA
South Dakota	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA	N/A	N/A
Tennessee	AAA	AA	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA
Texas	AAA	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA
Utah	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Vermont	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+
Virginia	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Washington	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA+	AA	AA	AA
West Virginia	AA-	AA-	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-	AA-
Wisconsin	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-
Wyoming	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AA+	AA+	AA+	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014 Source: Janney, "State Credit Update and DataBank," October 21, 2016 Source: Pew Charitable Trusts, "Rainy Day Funds and State Credit Ratings," May 2017

Noteworthy events

Illinois credit rating

See also: Illinois state budget and finances

On June 1, 2017, Stanford and Poor's Global Inc. and Moody’s Investors Service, credit rating agencies, downgraded Illinois’ credit rating. S&P also said that it might downgrade the state's credit rating further if the state failed to adopt a budget. The downgrade placed the state’s credit rating at one step above a junk rating (a low rating which indicates the state is a high risk investment). At the time of the downgrade, the state had not passed a budget in two years due to disagreements between the Democratic state legislature and Republican Governor Bruce Rauner. According to S&P analyst Gabriel Petek, “the rating actions largely reflect the severe deterioration of Illinois' fiscal condition, a byproduct of its stalemated budget negotiations, now approaching the start of a third fiscal year.” Prior to this downgrade, Illinois' credit rating was the lowest in the country. If downgraded again, Illinois would become the first state to receive a junk rating from a credit agency.

On July 6, 2017, the Illinois General Assembly passed a $36 spending plan and $5 billion tax increase. The legislature overrode Rauner's veto to pass the budget, which ended the two-year budget impasse. Moody's Investors Service said they may downgrade Illinois' rating despite the budget. On July 5, after the state Senate voted to override the veto, Moody's wrote that, "so far, the plan appears to lack concrete measures that will materially improve Illinois' long-term capacity to address its unfunded pension liabilities." S&P, in response to the budget passing, removed the state from its credit watch for a potential downgrade.

On October 9, 2017, S&P maintained the state's BBB- rating following the state's plan to sell $6 billion in bonds. The agency told the state that it still faces fiscal issues that could push the rating down further.

See also

• State budget and finance pages
• Glossary of state budget terms
• Pew Charitable Trusts
• Potential government shutdowns

External links

• Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014