Gov. Stitt, Treasurer Russ celebrate Oklahoma's improved credit rating

GOVERNOR STITT, TREASURER RUSS CELEBRATE ANNOUNCEMENT OF IMPROVED CREDIT RATING

OKLAHOMA CITY (February 14, 2024) - Today, Governor Kevin Stitt and Treasurer Todd Russ celebrated Oklahoma's strong financial standing after Fitch Ratings released their revised Rating Outlook, moving Oklahoma’s rating from 'Stable' to 'Positive.' Fitch Ratings becomes the third rating agency to improve Oklahoma's outlook within the last year, following Moody's and S&P.

"I'm proud of Oklahoma's conservative fiscal policies, and I commend Treasurer Russ for his commitment to keeping Oklahoma on sure footing,” said Gov. Stitt. “We know that Oklahoma is the best place to build a business and raise a family, and having a solid economic track record shows the world that we are in a strong position to face any financial challenge.”

Fitch's updated rating highlights several positive financial trends for the state to adjust spending when necessary, such as quick action to address revenue shortfalls and budgets at ninety-five percent of projected operating revenues, a long pattern of supplemental pension contributions and restoration of service levels. Fitch applauded Oklahoma’s strong fiscal reserves and our broad economy. They also affirmed the following ratings of the state: 

• $1.4 billion of lease revenue bonds issued by the Oklahoma Capital Improvements Authority at 'AA-'
• $86.6 million of Transportation Infrastructure Finance and Innovation Act (TIFIA0 loan obligations issued by the Oklahoma Capital Improvement Authority at 'AA-'
• $400 million of lease revenue bonds issued by the Oklahoma Development Finance Authority at 'AA-'

"We appreciate acknowledgment from the well-known bond rating agency, Fitch Ratings, noting the state’s sustained improvements in expenditure flexibility and overall fiscal management,” said Treasurer Russ. “With particular emphasis on conservative budgeting practices through economic cycles of revenue volatility, I’m proud to join the Governor, Speaker and Pro Tempore to advocate for Oklahoma taxpayers."

In a statement, Fitch Ratings said, in part: "Fitch's revision of the Outlook on Oklahoma's 'AA' long-term IDR to Positive from Stable reflects the state's sustained improvements in expenditure flexibility and overall fiscal management, particularly its adherence to conservative budgeting practices through economic cycles including the recent period of revenue volatility caused by the coronavirus pandemic. The state has consistently taken timely action to address revenue shortfalls and budgets only 95% of projected operating revenues. A long pattern of supplemental pension contributions and restoration of service levels enhances the state's ability to adjust spending when necessary."

The full report from Fitch Ratings can be found here.