February 29, 2024

These 12 States Now Have a Better Credit Rating Than the US Government

  • Fitch’s recent downgrade of US debt to AA+ means there are now several states that have a higher credit rating than the federal government.
  • The downgrade from Fitch comes 12 years after S&P downgraded US credit to AA+.
  • These are the 12 states that have higher credit ratings than the US.

There are a dozen US states that now have a higher credit rating than the federal government after Fitch downgraded the US credit rating to AA+ from AAA earlier this week.

Fitch’s downgrade comes 12 years after S&P lowered the US government’s debt rating to AA+, and both downgrades are centered around similar concerns: political brinkmanship surrounding the debt ceiling that often leaves the government on the verge of an unprecedented default before a last-minute political fix is made.

Also not helping the US government is its ballooning debts, growing interest payments on said debts, a reduction in tax revenues due to several tax cuts in recent years, and a complicated and lengthy process to balance the government’s budget.

Most US states don’t have as dramatic of a political fight when it comes to balancing state budgets, due in part to the fact that many often have one party that has a majority throughout different chambers of the legislature.

These are the 12 states that have at least two AAA debt ratings from the three rating agencies, compared to the US government’s single triple-A rating from Moody’s, and its AA+ rating from Fitch and S&P. 

12. Texas

Austin, Texas

Austin, the capital of Texas and home to the University of Texas, has emerged as a promising tech hub as companies like Tesla and Google relocate their headquarters to the metro.

Peter Tsai/Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

11. Tennessee

Downtown Memphis Tennessee Skyline at Sunset

Memphis, Tennessee.

Connor D. Ryan/Shutterstock



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

10. Georgia

Atlanta, Georgia

Atlanta, Georgia.

Steve Kelley / Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

9. Florida

Miami Florida

Miami, Florida.

Alexander Spatari/Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

8. Utah

a view of downtown Salt Lake City

Salt Lake City, Utah.

f11photo/Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

7. North Carolina

Aerial view of downtown Charlotte, North Carolina.

Charlotte, North Carolina.

Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

6. Virginia

Downtown Charlottesville, Virginia.

Downtown Charlottesville, Virginia.

Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

5. Maryland

State House of Annapolis

State House of Annapolis, Maryland.

Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

4. Delaware

Photo of Wilmington, Delaware

Wilmington, Delaware.

Denis Tangney Jr./Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

3. Minnesota

Downtown Minneapolis, Minnesota.

Minneapolis, Minnesota

Dan Anderson/ Getty Images.



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

2. Missouri

The Kansas City, Missouri skyline.

The Kansas City, Missouri skyline.

Edwin Remsberg/Getty Images



Fitch Rating: AAA
S&P Rating: AAA
Moody’s Rating: Aaa

1. South Carolina

Charleston, South Carolina, USA town skyline.

Charleston, South Carolina.

Shutterstock



Fitch Rating: AAA
S&P Rating: AA+
Moody’s Rating: Aaa

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