For Immediate Release
September 28, 2022
Contact: Tony Mangan
Gov. Noem Celebrates South Dakota’s Continued AAA Credit Rating
PIERRE, S.D. – Today, Governor Kristi Noem celebrated Fitch Ratings’ reaffirmation of South Dakota’s AAA credit rating.
“This rating again demonstrates that our conservative fiscal policies are working,” said Governor Noem. “Our administration has made it a priority to not raise taxes. We’ve paid off bonds and debt, balanced our budget, and grown our economy, which has resulted in this good news.”
Fitch Ratings stated that South Dakota’s economy has been aided by its diversity with “important concentrations in agriculture, manufacturing, trade, finance and tourism.” The company also said that the state’s population gains have exceeded the U.S. average in recent years.
“South Dakota has ample financial flexibility based on conservative management, a requirement to start and end the fiscal year with a balanced budget, and maintenance of several well-funded reserves,” wrote Fitch Ratings.
Fitch Ratings also credited South Dakota’s approach to the pandemic for the state’s strong jobs market, noting that “South Dakota did not put mandatory mitigation measures in place to address public health issues related to the coronavirus pandemic.”
The state’s rating outlook remains stable thanks to the state’s continued approach to managing state finances, low unemployment, and higher than expected budget revenue projections.
You can find the Fitch Ratings report here.