Louisiana State Treasurer JOHN FLEMING (photo courtesy of John Fleming/Facebook)
The global credit rating agency, Fitch Ratings, has upgraded Louisiana’s state credit rating from AA- to AA, with a Stable Outlook. State Treasurer John Fleming says a stronger credit rating can help access capital markets on more favorable terms, potentially reducing borrowing costs.
“That enures to us a lower cost, and therefore more cash flow, which then allows us to to do more for the state for the taxpayer,” Fleming said.
Fitch Ratings upgraded the state’s credit rating based on three successful years of budget policy improvements that started with the revenue policy changes in 2024 that reduced a projected structural budget gap. Fleming says Louisiana has been committed to sound financial management.
“This is all reflective of a growing stability of the state budget and the surpluses that we’re showing,” Fleming noted.
Louisiana finished last fiscal year with an estimated $565 million surplus.
Fleming says an improved bond rating is more than a number on a financial report. He says it sends a positive signal about Louisiana’s creditworthiness and ability to meet financial obligations.
“Running a state is similar to running your household. The better you pay your bills and the less money you waste, the better the results are for everyone concerned,” Fleming explained.
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