The Spring Observer reports that Standard & Poors has upgraded the State of Texas’ bond rating to AAA, the highest category. Texas, like the United States, held the second-highest rank previous of AA+.
Texas’ imperfect credit rating had been the subject of some big disagreements recently. Recently, when Governor Perry’s nationwide tour of offending people began, Jay Nixon (the Governor of Missouri) pointed out that his State was a safer investment.
The news did not garner any mainstream press, but it is a big deal. For the first time in Texas history, Texas is receiving the highest credit rating from all three major credit agencies.
Comptroller Susan Combs then released the following statement:
“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. 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.”
Governor Rick Perry, meanwhile, sent out the following, brief press release:
“S&P’s decision to raise Texas’ credit rating to AAA is no accident, but further proof that the Texas model of conservative fiscal discipline is a key element of our strong economy, and a stark contrast to the out-of-control spending and rising debt ceilings of Washington, D.C. In Texas, we adhere to the powerful combination of keeping taxes low and government spending in check, ensuring Texas remains the best place in the country to live, work, raise a family and build a business.”
The news is a major event for the State. Holding a perfect bond rating both lowers interest rates for borrowing money, thus alleviating the deficit. Additionally, it encourages more investment, as more individuals find the investment to be one of the safest there is.
Republican or Democrat, Texans should celebrate this news.