Martin Applauds Credit Rating Upgrade, Underscores Importance of Protecting Rainy Day Fund

HARRISBURG - Senate Appropriations Committee Chair Scott Martin (R-Lancaster) applauded today's announcement that Moody's Investor Services upgraded Pennsylvania's credit rating to Aa2 based on the state's strong budget reserves and prudent financial management.

The announcement was the fourth major upgrade to the state's financial outlook in the past 13 months. In September 2023, Moody's Investor Services and S&P Global Ratings both affirmed Pennsylvania's current Bond Rating and revised the state's financial outlook from "Stable" to "Positive." In November 2023, Fitch Ratings upgraded the state's bond rating from AA- to AA.

The previous upgrades helped Pennsylvania save nearly $100 million during the December 2023 bond sale.

While Martin said the bond rating upgrade was good news, he also added that Moody's revision of the state's financial outlook today from "Positive" to "Stable" is a reminder that lawmakers and the governor still have work to do to achieve a sustainable, structurally balanced budget in the future.

Moody's specifically noted that a sustained return to structurally balanced budgets and maintenance of sound budget reserves could lead to future credit upgrades, while sustained budgetary imbalance and depletion of reserves could lead to future downgrades.

"Today's announcement is another positive step as we continue to work toward achieving responsible, structurally balanced budgets in the years ahead. At the same time, it serves as a critical reminder of the importance of maintaining the state's Rainy Day Fund and avoiding the temptation to overspend and create bigger deficits in the future. We have worked very hard to achieve these credit rating upgrades that save taxpayers huge amounts of money, and we owe it to taxpayers to continue to manage their money wisely," Martin said.

CONTACT: Jason Thompson