Idaho scores the strongest regional credit rating

Students aren’t the only ones getting graded this time of year. States are starting to receive their credit ratings to help bondholders weigh whether they are a good investment. Based on the most recent news from Fitch, Idaho is a notch above its neighbors in creditworthiness. Idaho continued to secure the top AAA credit rating (tied with Utah), while Montana, Nevada, Oregon and Washington came in just below that with an AA+ rating. There currently isn’t a comparable Fitch rating for Wyoming.

Here is how Fitch describes its top two credit ratings:

• “AAA' ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.”

  
  

• "AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.”

Responding to the announcement by Fitch, Idaho Governor Little said:

“Thanks to our diligent and unrelenting focus on maintaining a structurally balanced budget and saving healthy amounts for rainy days, Idaho has maintained the AAA rating from Fitch for five straight years, and I am very proud. The rating means we’ll save Idaho taxpayers millions of dollars on future projects. This is what good government is all about. I appreciate my partners in the Legislature for sharing my passion for maintaining a lean state budget and stable rainy-day funds. Our partners in the private sector, too, have done a tremendous job propelling Idaho’s economy forward.”

Fitch shared these details about its credit ratings for Idaho, Montana and Washington.

Idaho credit rating: AAA / Outlook stable (2025)

• “Fitch believes the state is well positioned to absorb multiple rounds of recent tax cuts and dedicated spending allocations from the general fund, given Idaho's prudently managed budget with significant one-time spending that rolls off to create fiscal capacity.”
  

• “Idaho's economy has seen strong growth in recent years. The state's population increased by about 27.7% from 2010 to 2024, far exceeding the comparable national rate (about 10.2%). The state's economy has been diversifying beyond traditional strengths in agriculture and mining, with growth in transportation and warehousing, professional and business services, retail, construction, and healthcare. Personal income gains have accelerated with population growth and diversification, although state wealth remains below average as measured by per capita personal income.”

  
  

Montana credit rating: AA+ / Outlook stable (2024)

• “Historically, periods of strong revenue gains tied to natural resource activity have ended with cyclical downturns followed by periods of weaker revenue expansion. The state's consistently conservative approach to fiscal management has nevertheless enabled it to maintain stable operating performance while addressing spending priorities for education, health care and infrastructure, as well as enhancing its formal reserves. These strengths leave the state well positioned to manage through both the current and future economic cycles.”
  

• “Montana's revenues are diverse but economically sensitive given the relatively large share of state-source revenues derived from income tax and natural resource levies. Fitch expects solid revenue growth trends over the medium term in line with historical rates as recent decreases to personal income tax rates reset the baseline for future growth.”

  
  

Washington credit rating: AA+ / Outlook stable (2025)

• “The 'AA+' ratings incorporate the state's very strong financial resilience, which is supported by a statutory requirement for a balanced four-year budget and formulaic funding of the budget stabilization account (BSA); the latter has led to the accumulation of solid fiscal reserves. Education funding poses continued long-term spending pressure for the state given steady population growth and the state's role as the primary funding source for K-12 public schools.”
  

• “Washington's spending growth, absent policy actions, will likely be marginally above its pace of revenue growth, requiring regular budget management actions to ensure ongoing structural balance.”

  
  

Idaho’s continued AAA credit rating from Fitch shows that prudent fiscal management, combined with a pro-growth regulatory framework, is not only a good deal for citizens and businesses but also a good investment for bondholders.