Kemp: S&P has reaffirmed Georgia's AAA rating

(The Center Square) — S&P Global Ratings has reaffirmed its "AAA with a stable outlook" rating of Georgia, the governor said Tuesday.

FitchRatings and Moody's Investors Service, the other two top credit rating agencies, did not issue formal reports on the Peach State's bond ratings because the state did not issue new general obligation bonds for the current fiscal year, officials said. According to a news release, the two agencies previously gave Georgia the highest possible ratings in their state creditworthiness analyses.

"Once again Georgia's responsible, conservative approach to budgeting has allowed our state to receive affirmation of the highest possible bond rating," Kemp said in a statement. "In the face of economic uncertainty on the national level due to bad policies coming out of Washington, D.C., I could not be more proud of our shared focus with the legislature on careful budgeting and maintaining a strong economic development pipeline that keeps Georgia a safe bet for any and all job creators."

S&P cited the state's budgetary approach and its economic strength among the factors in bestowing the rating.

"For a third consecutive year, Georgia generated a multi-billion operating surplus, and it maintains very strong reserve balances at its statutory limit of 15% of previous year net revenues," the agency said. "Despite expectations for near-term softening of broader U.S. economic activity and revenue conditions, we believe Georgia will carry this momentum through the end of fiscal 2024 and into fiscal 2025.

"...We consider Georgia's financial management strong, which indicates policies and practices are well embedded and likely sustainable," the agency said. "...We view the state's budget management framework as good, demonstrated by the executive branch's broad powers to adjust appropriations and its track record of making politically difficult revenue and expenditure decisions to restore balance, when necessary. Deficits are not carried forward, and gap-closing solutions appear to be generally focused on structural budget balance."