Gov. Katie Hobbs: Arizona’s credit outlook upped to ‘positive’ by rating agency

PHOENIX — Governor Katie Hobbs announced Thursday that the state of Arizona’s credit outlook was upgraded from “stable” to “positive,” according to a mega credit-rating agency.

S&P Global Ratings, a financial company based out of New York, released a comprehensive report regarding Arizona’s economic growth. It covered the state’s trend of lowering the cost of living while increasing overall personal income. Notably, Arizona’s gross state product was higher than the United States, the report said.

Rating outlooks can be defined as positive, negative, stable or developing. Stable meant the rating was not likely to change whereas positive now means the rating may be raised.

“We are building an Arizona that lifts up the middle class, supports smart and sustainable business growth, and leverages the endless opportunities our state has to offer,” Hobbs said in a press release. “The results are undeniable, and I will keep working every day to make sure all Arizonans continue to benefit from our booming economy.”

Arizona specifically transitioned from AA/Stable to AA/Positive. The “AA” defines the category, which means the entity “has a strong capacity to meet its financial commitments.” AA is the second-highest of S&P’s long-term issuer credit ratings, AAA being the highest and most secure.

Other points of interest highlighted by S&P were the Grand Canyon state’s population growth, stable reserves, low debt and responsible fiscal management.

The enhanced rating was a byproduct of a Hobbs-negotiated bipartisan budget passed in June that seeks to close the gap of a projected $1.4 billion deficit.

Related

Gov. Katie Hobbs says Arizona mortgage assistance program helps 100 families purchase new homeGov. Katie Hobbs, Intel announce partnership to train semiconductor workforceU.S. marshals arrest Los Angeles murder suspect in ChandlerBorder Patrol Agent sentenced for defrauding SNAP, WIC programsMan found guilty of attempted murder in 2021 shooting of Phoenix police officer Tyler MoldovanDining hall workers suing ASU over First Amendment right to protest working conditions