Standard & Poor’s, a national financial service company that provides independent credit ratings, has given Michigan’s AA-credit rating with an improved “positive outlook.” After reviewing the state’s finances and economy, the organization followed both Moody’s Investors Service and Fitch’s “stable outlook” rating with improvements. The three firms base the credit ratings on finances and economic forecasts.
“This is good news for Michigan residents and taxpayers,” Gov. Rick Snyder says. “For the past seven years, the state has displayed fiscal discipline with seven back-to-back balanced budgets and aimed to save $1 billion in our rainy day fund. Our reinvented tax structure clearly shows Michigan’s competitive edge in the national and international markets.”
S&P’s credit rating report also indicates that Michigan has been proactive in managing its economy through increasing its reserves, structurally aligning its budgets, and adopting pension reforms. This has caused Michigan’s economy to grow consecutively for the past five years.
“I am pleased Standard & Poor’s has acknowledged the hard work and effort taken to improve the state’s financial position and economy in recent years,” says Nick Khouri, state treasurer. “It also reaffirms that we will continue to be good stewards of taxpayers’ money as the economy continues to grow and becomes more diversified.”
The improved ratings from these three companies allows Michigan to borrow money at a lower interest rate, saving taxpayers millions annually.
