Michigan’s Credit Rating Upgraded

Liz Gullett

Jul 29, 2022

Fitch Ratings upgraded Michigan’s credit rating from AA to AA+ with a “stable outlook” for the first time since 2013. The change in credit rating means the state will have lowered borrowing costs for upcoming bond issues, which in turns saves taxpayer money. Fitch specified in its report that the updated credit rating reflects the state’s higher level of fiscal resilience and diversified economy compared to the previous decade, fiscally responsible budgeting, and effort to address debt.

Fitch noted Michigan is managing economic risks by improving budgetary flexibility through increased fiscal reserves, paying down liabilities and practicing conservative budgeting and revenue forecasting. The state has boosted its resilience by replenishing its rainy-day fund, expanding cash balances held in its government-wide Common Cash Reserve, and maintaining structural balance. In addition, Fitch anticipates Michigan will take advantage of continued economic growth and boost the competitiveness of its workforce.

To read the full report, please click here.

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