Citing Arkansas’ “financial resiliency,” S&P Global Ratings revised the outlook on the state’s AA general obligation bond rating to positive from stable.
The rating agency’s action Thursday came ahead of the state’s sale of about $30 million of water, waste disposal and pollution abatement facilities GO bonds.
“S&P’s improved outlook for the state from ‘stable’ to ‘positive’ is a direct result of the hard work by Governor (Sarah Huckabee) Sanders and the Arkansas General Assembly to fully fund our long-term reserves and to limit the growth of spending,” said Jim Hudson, secretary of the Arkansas Department of Finance and Administration.
“The outlook revision reflects Arkansas’ demonstrated budget management practices and financial resiliency across economic cycles, which has yielded steady operating surpluses and an accumulation of substantial reserves,” S&P analyst Rob Marker said in a statement. “This is in conjunction with our expectation that recent improving economic and demographic growth trends will more closely align with U.S. levels over time, all of which support our view of a one-in-three chance that we could raise the rating over the outlook period.”
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Arkansas is rated Aa1 with a stable outlook by Moody’s Ratings.
“The rating reflects the state’s strong governance practices, with conservatively managed financial operations that consistently result in healthy year-end fund balances and below-average debt and pension burdens,” Moody’s said in a May 1 report. “These features balance credit risks stemming from a weak demographic profile and exposure to elevated Medicaid expenses.”
“I’m pleased that both Moody’s and S&P affirmed their credit ratings for the State of Arkansas,” said Jim Hudson, secretary of the Arkansas Department of Finance and Administration. “S&P’s improved outlook for the state from ‘stable’ to ‘positive’ is a direct result of the hard work by Governor (Sarah Huckabee) Sanders and the Arkansas General Assembly to fully fund our long-term reserves and to limit the growth of spending.”
The state had $514.13 million of GO bonds issued for highways, water, capital improvements, and higher education outstanding as of June 30, 2023.
Wynne, 1909: “This picture is of a passenger depot taken while burning.” Indeed, the depot (seen in our previous feature) went up in smoke, lighting up the night sky and large hotels to the right. Firefighters were able to keep the fire from reaching the hotels.
Send questions or comments to Arkansas Postcard Past, P.O. Box 2221, Little Rock, AR 72203
Wynne, 1909: “This picture is of a passenger depot taken while burning.” Indeed, the depot (seen in our previous feature) went up in smoke, lighting up the night sky and large hotels to the right. Firefighters were able to keep the fire from reaching the hotels. Send questions or comments to Arkansas Postcard Past, P.O. Box 2221, Little Rock, AR 72203
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Ray Hanley
Ray Hanley is a retired health care and IT executive, historian, producer of the Arkansas Democrat-Gazette’s “Postcard Past” feature and author of 20 Arkansas history books.
