St. Paul – In conjunction with a proposed $600 million General Obligation (GO) bond sale on August 11, the three major bond rating agencies have affirmed Minnesota’s existing credit ratings. The bonds continue to receive the highest ratings - AAA - from Standard & Poor’s Corporation and Fitch Ratings.  Moody’s Investors Service maintained their rating of Aa1.

Fitch  Ratings summarized its decision for the high rating: “Minnesota's 'AAA' GO rating reflects the state's excellent debt structure, broad-based economy with above-average wealth levels, and track record of management that is sensitive to changes in the state's fiscal environment, with regular reviews of revenue forecasts.”

Each agency did caution that the economic downturn and its effect on the state budget continues to be of concern.

 “Nearly all states are facing difficult times in this recession, but there is underlying strength in Minnesota’s economy and we are maintaining our tradition of strong financial management,” said Minnesota Management and Budget Commissioner Tom Hanson. “We still have work to do but appreciate being recognized as one of the highest rated states.” 

The ratings were affirmed by the rating agencies after meetings in late July with Minnesota Management & Budget officials in New York City.