State officials and lawmakers in Ohio should be pleased with a ratings upgrade by Fitch. The agency moved Ohio’s long-term issuer default rating to AAA from AA+; its $4.5 billion in outstanding general obligation bonds to AAA from AA+; its $1.5 billion in outstanding appropriation-backed bonds to AA+ from AA; and the programmatic rating of the Ohio School District Credit Enhancement Program to AA+ from AA.
That is welcome news.
Fitch said the move “reflects material strengthening of the state’s financial resilience and budget management …” and that “Ohio has achieved a sustained trend of balanced finances over the past decade coupled with more recent growth in fiscal reserves and cash balances.”
In fact, Fitch said the upgrade factored in “the state’s proven ability to absorb the effects of economic cyclicality and tax policy changes.”
Among praise for Ohio’s efforts in recent years, Fitch noted the Buckeye State economy has “continued to become more diversified,” and that the main limiting factor to Ohio’s steady economic growth would be slow population gains.
Affirmation that Ohio is getting this right should go a long way toward supporting more prudent spending of taxpayer dollars while working to expand the state’s economic horizons.
