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Treasurer Todd Russ announced today that Moody’s Ratings upgraded the state’s credit rating to Aa1 from Aa2. This upgrade, to the second highest possible rating, is a recognition of the state’s strong financial position, low debt burden, and continued economic diversification. Oklahoma’s robust reserves and responsible budgeting practices ensure the state remains well-positioned for future development and investment. 

“It's no surprise Moody's continues to improve Oklahoma's credit rating. The rating upgrade is a reflection of the hard work the state, Governor Stitt and the Legislature have done to build and maintain a stable financial foundation while navigating challenges and continuing to foster economic growth,” stated Treasurer Russ. “As Oklahoma continues its commitment to economic growth and financial stability, we look forward to sharing notable achievements like real GDP growth and improved resident income levels with the rating agencies. These advancements will point to enhancing the quality of life for all Oklahomans. I’m proud of the Debt Management team in my office who has worked tirelessly to share the Oklahoma story with Moody’s and other rating agencies alongside the Governor and other state leaders.”

In its press release, Moody’s noted “a long trend of conservative budget management” and various “balance sheet strengths”, in conjunction with extremely low “fixed costs from debt, pensions and retiree healthcare”. Oklahoma received its last credit upgrade from Moody's in October of last year, and this consecutive upgrade further demonstrates the state's continued improvement and strong economic outlook. It highlights the state's ongoing commitment to financial stability and growth, reinforcing confidence in Oklahoma’s fiscal future.

“Our new Aa1 rating from Moody's is validation of the conservative fiscal policies we champion in our state,” said Governor Stitt. Fiscal responsibility is a win for every Oklahoman. To set the next generation up for success, we have to make good financial choices now. That's why Treasurer Russ and I are proud to report to Oklahomans that we're leaving our state in better fiscal shape than we found it."

The state was placed on Positive Outlook by three credit rating agencies last year. As noted in the Moody’s press release, “the outlook has been revised to stable from positive in conjunction with the upgrade.” The state looks forward to continued discussions with S&P Global Ratings and Fitch Ratings, who both have a Positive Outlook on the state’s credit rating, as they consider resolving the credit outlook in the near term.

The upgrade will positively impact the upcoming bond issue by the Oklahoma Development Finance Authority (ODFA), with additional savings extending to certain colleges and universities. The upgrade will also benefit all future bond issues by ODFA as well as the Oklahoma Capitol Improvement Authority, the state’s largest issuer of tax-backed debt.

Wednesday, February 14, 2024

Today, Governor Kevin Stitt and Treasurer Todd Russ celebrated Oklahoma's strong financial standing after Fitch Ratings released their revised Rating Outlook, moving Oklahoma’s rating from 'Stable' to 'Positive.' Fitch Ratings becomes the third rating agency to improve Oklahoma's outlook within the last year, following Moody's and S&P.

"I'm proud of Oklahoma's conservative fiscal policies, and I commend Treasurer Russ for his commitment to keeping Oklahoma on sure footing,” said Gov. Stitt. “We know that Oklahoma is the best place to build a business and raise a family, and having a solid economic track record shows the world that we are in a strong position to face any financial challenge.”

Fitch's updated rating highlights several positive financial trends for the state to adjust spending when necessary, such as quick action to address revenue shortfalls and budgets at ninety-five percent of projected operating revenues, a long pattern of supplemental pension contributions and restoration of service levels. Fitch applauded Oklahoma’s strong fiscal reserves and our broad economy. They also affirmed the following ratings of the state: 

• $1.4 billion of lease revenue bonds issued by the Oklahoma Capital Improvements Authority at 'AA-'
• $86.6 million of Transportation Infrastructure Finance and Innovation Act (TIFIA0 loan obligations issued by the Oklahoma Capital Improvement Authority at 'AA-'
• $400 million of lease revenue bonds issued by the Oklahoma Development Finance Authority at 'AA-'

"We appreciate acknowledgment from the well-known bond rating agency, Fitch Ratings, noting the state’s sustained improvements in expenditure flexibility and overall fiscal management,” said Treasurer Russ. “With particular emphasis on conservative budgeting practices through economic cycles of revenue volatility, I’m proud to join the Governor, Speaker and Pro Tempore to advocate for Oklahoma taxpayers."

In a statement, Fitch Ratings said, in part: "Fitch's revision of the Outlook on Oklahoma's 'AA' long-term IDR to Positive from Stable reflects the state's sustained improvements in expenditure flexibility and overall fiscal management, particularly its adherence to conservative budgeting practices through economic cycles including the recent period of revenue volatility caused by the coronavirus pandemic. The state has consistently taken timely action to address revenue shortfalls and budgets only 95% of projected operating revenues. A long pattern of supplemental pension contributions and restoration of service levels enhances the state's ability to adjust spending when necessary."

The full report from Fitch Ratings can be found here.

Last Modified on Feb 14, 2024

Governor Kevin Stitt and Treasurer Todd Russ today celebrated Oklahoma's strong financial standing after Moody's Investors Service revised the state's credit outlook from stable to positive.

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