In a move that speaks to the fiscal stability of North Carolina, State Treasurer Brad Briner has announced yet another feather in the state's financial cap. Confirming the state's resilience and budgetary prudence, S&P Ratings has joined Moody's in affording North Carolina's general obligation bonds a coveted 'AAA' rating. A notable achievement for the Tar Heel State, this endorsement comes as the second within as many weeks, further solidifying North Carolina's standing in the eyes of the bond market.
Additional nods came for two transportation projects on the horizon. According to the North Carolina Department of State Treasurer, the Limited Obligation (BuildNC) Bonds aiming to drum up $300 million garnered an 'AA+' rating. Meanwhile, the more hefty Grant Anticipation Revenue Vehicle Bonds, pulling in at $475 million, secured an 'AA' rating, positioning the state for considerable transportation advancements.
The 'AAA' rating carries with it S&P's vote of confidence in North Carolina's economic forecast. In their analysis, S&P stated, "The outlook also reflects the state's commitment to strong fiscal management of the budget, reserve balances, and debt and retirement liabilities. Furthermore, we anticipate that underlying strengths and structural features of North Carolina's economy will support growth over the long term." Such affirmation hints at the state's blend of financial discipline and strategic foresight, as per the North Carolina Department of State Treasurer.
Cognizant of past trials, North Carolina's economic narrative is not one bereft of challenge. The state endured around $60 billion in damages from Hurricane Helene, a testament to its vulnerability to nature's whims. However, as S&P observed, despite the physical risks stemming from its 300 miles of Atlantic coastline, "we believe it has addressed this risk, including maintaining and replenishing reserves…" These steps have proven critical in maintaining the state's favorable bond ratings and overall fiscal health, as detailed by the North Carolina Department of State Treasurer.
Amidst a pantheon of states seeking fiscal accolades, North Carolina proudly counts itself among the 14 other states boasting 'AAA' ratings from all three bond rating agencies as of 2024. This financial standing is strategically managed by the N.C. Department of State Treasurer's State and Local Government Finance Division, which oversees the sale and delivery of state and local debt, closely monitoring repayment. The Devison's stewardship is yet another piece in the puzzle of North Carolina's sterling credit reputation.
