Governor Andy Beshear recently announced Kentucky’s credit rating has improved. Moody’s Ratings upgraded the state’s score from Aa2 to Aa3. Officials said the measurement gauges the Commonwealth’s ability to pay debts and the overall health of the economy.
Governor Andy Beshear said the upgrade was due to the dramatic growth Kentucky’s economy has experienced in recent years.
“They also said the upgrade reflects growth in key industries that will help solidify Kentucky’s economic growth over the next several years. They include large investments in our manufacturing sector, our position in EV manufacturing, and our position as a logistics hub as well as the growth of our tourism and healthcare sectors,” said Beshear.
Officials said 2021 and 2022 were Kentucky’s most productive economic development years in history. 2023 was the Commonwealth’s top year for exports ever, and each of the last two years has been the state’s best for tourism.
In 2023, Fitch Ratings and S&P Global Ratings both upgraded Kentucky’s credit rating, making Moody’s Ratings the third to do so in just over a year. Beshear said it’s a significant milestone.
“Kentucky has definitely hit the trifecta. There are three major rating agencies, and we’ve now been upgraded in the last couple years by all three,” said Beshear.
Officials said Fitch Ratings upgraded Kentucky’s credit rating due to the Commonwealth’s strong financial position, budgetary discipline, continued commitment to fully funding pensions, and record levels in the budget reserve trust fund. S&P’s rating increase in 2023 was the state’s first-ever rate improvement from the company.