CHARLESTON, W.Va. (WVDN) — S&P has released its latest outlook on West Virginia’s creditworthiness, upgrading the State’s outlook to positive from stable and affirming the AA- rating on West Virginia’s general obligation debt.
“This positive rating action affirms my Administration’s approach to our budget and West Virginia’s long-term financial health,” said Governor Morrisey. “Our future is bright, with employment forecasted to continue to grow over the next several years, but we cannot ignore the medium- and long-term budget pressures that exist. S&P’s report highlights my administration’s strong commitment to fiscal responsibility, living within our means, and advancing initiatives which drive government efficiency and accountability. I am proud to oversee the first positive rating action by S&P regarding West Virginia’s creditworthiness in more than a decade.”
Highlights from S&P’s report:
“Our view of West Virginia’s positively trending credit quality reflects the state’s recent run of large budgetary surpluses, multiple ample reserve funds, and management actions to control costs. We expect the state to be able to address the changing federal policy landscape while maintaining structural balance and healthy reserves. The state is required to adopt balanced budgets, and maintain structural balance during the fiscal year, and the governor has significant autonomy related to disbursements. While the state anticipates no material near-term negative revenue effects from the Medicaid changes in the federal reconciliation law, or other federal policy and funding changes, if any do arise we expect the state will make corresponding adjustments to its budget to ensure balance.”
“…the state is projected to increase total employment by 0.6% from 2025 through 2028, which we view positively.”
“The state budgets conservatively and tracks revenue and expenditures monthly, maintains a six-year financial forecast, and maintains investment and reserve and liquidity policies.”
“The state has, when needed, made spending reductions, and gap-closing solutions are generally focused on structural budget balance rather than on nonrecurring revenue or expenditure actions.”
