Moody’s reaffirms Idaho’s strong credit rating

Moody’s Ratings, one of the major global credit review companies, has reaffirmed its highest credit rating for Idaho while saying the state’s credit “outlook remains stable.” This good fiscal news is a reflection of Idaho’s sound fiscal management and helps save money for taxpayers by keeping government borrowing costs low with favorable terms.

According to Moody’s October 9 update:

“Idaho's Aaa issuer rating reflects its strong credit position supported by continued higher than average economic and demographic growth, healthy and stable finances, and low leverage and fixed costs.”

Idaho State Treasurer Julie Ellsworth noted in a press release:

“This reaffirmation highlights the strength of Idaho’s economy and the sound financial management that protects our taxpayers. By keeping Idaho’s top-tier rating, we ensure continued confidence in our state’s fiscal stability and investment quality.”

In May of this year, Fitch Ratings also reaffirmed its highest credit rating for Idaho. Fitch said:

“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.”

According to a new report from Pew Charitable Trust, Idaho has approximately 87 days' worth of spending capacity in its rainy day reserve. This is the 8th best nationally for budget savings. For comparison, Washington state has only 13 days' worth of savings for spending, which is 49th worst. The national average was 47 days.

Although states across the country are facing a tightening budget outlook, the continued decisive action of policymakers to right-size Idaho’s spending, combined with an $880 million general fund reserve (15%) and $1.3 billion in total reserves (22%), provides the Gem State with ample resources to weather economic changes.