POSTED: Wednesday, October 2, 2013 - 10:00pm
UPDATED: Wednesday, October 2, 2013 - 10:09pm
AUSTIN, TX — Texas Comptroller Susan Combs announced today that Standard & Poor’s raised its rating for Texas general obligation bonds one notch from AA+ to AAA, which is the highest rating. The other two ratings agencies, Fitch Ratings and Moody’s Investors Service, already maintained the highest ratings for Texas bonds.
This is the first time Texas has received the top general obligation bond ratings from all three ratings agencies.
“I am pleased with the Standard & Poor’s ratings upgrade. When I made presentations to the ratings agencies this summer my message was very clear,” Combs said. “Texas is a business-friendly state with a strong job market and a diverse mix of industries. These bond ratings reflect Wall Street’s confidence in the Texas economy, the state’s revenue growth and disciplined cash management and budgeting.”
General obligation bonds are backed by the full faith and credit of the state. Various state agencies issue bonds for projects such as road construction, water infrastructure, college student loans and veterans’ home loans. Strong bond ratings can help lower borrowing costs.
The highest general obligation bond ratings are in addition to the top ratings Texas received for its short-term notes last month.