State Treasurer Brad Briner announced today that S&P Global Ratings has re-affirmed North Carolina’s AAA rating on its outstanding general obligation bonds. The credit rating stated that “North Carolina’s credit profile reflects our view of the state’s well-defined financial management policies, a commitment to maintaining balanced biennial budgets, preservation of very strong reserves, low-to-moderate debt burden and well-funded pension plans.”
“There is a reason that time and again North Carolina receives these top ratings- our leaders are fiscally prudent in their oversight and management of our funds,” said Treasurer Brad Briner. “This rating affirms that and keeps our state in an excellent position to borrow money for future economic development and growth.”
In addition to the State’s AAA general obligation bond rating, S&P affirmed its AA+ rating on the state's appropriation debt. Unlike general obligation debt, which is backed by a state’s full faith and credit, appropriation debt is backed by the state’s promise to make future annual appropriations for debt service. For that reason, S&P typically rates this type of debt lower than an issuer’s general obligation debt.
“North Carolina has a long tradition of smart money management, and we want to make sure we stay on that path,” said Denise Canada, DST Deputy Treasurer of the State and Local Government Finance Division. “Our collaboration with our colleagues at the Office of State Budget and Management to highlight our success to S&P, coupled with these high ratings, illustrates how strong oversight is a priority in every level of government in our state.”
The State and Local Government Finance Division manages the sale, monitoring and reporting of State debt. It also reviews local government debt proposals and oversees the sale and repayment of local debt. More information can be found at www.nctreasurer.gov/slg