Arizona received an upgrade from Moody’s Investors Service.
Tuesday’s rating action brings the state’s issuer rating to Aa1, up from Aa2. The rating outlook remains stable.
Arizona’s capitol. Moody’s upgraded the state’s issuer rating to Aa1 Tuesday.
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The rating agency cited the state’s continued economic growth, rebuilt reserves, and the reduction of its already-low debt burden.
Other key factors include below-average pension liabilities and demonstrated budget discipline. Theose factors are balanced by constitutional restrictions that limit the state’s financial flexibility.
With the upgrade to Arizona’s issuer rating, Moody’s upgraded its general fund lease-backed certificates of participation, including certificates issued through the Arizona School Facilities Board, to Aa2 from Aa3.
Also upgraded are Arizona Game and Fish Department and Commission Beneficial Interest Certificates, Series 2006, to Aa2 from Aa3.
Moody’s affirmed its Aa2 rating on the Phoenix Civic Improvement Corporation’s State of Arizona Distribution Revenue Bonds, Series 2005B, for the Civic Plaza expansion project.
The upgrades affect approximately $1.5 billion in outstanding debt.
Arizona is rated AA by Standard & Poor’s.