Governor’s Office: Fitch Affirms Louisiana’s Bond Rating

BATON ROUGE - Today, Fitch Ratings assigned an “AA” rating to approximately $335 million in general obligation (GO) bonds. The agency also described Louisiana’s rating outlook as “stable.”

The assigned credit rating means that the state can fund important construction projects and repairs at low interest rates.

“The rating agencies have consistently noted Louisiana's fiscally responsible approach to budget challenges as a strength," said Commissioner of Administration Kristy Nichols. "As we work to create a balanced budget for the upcoming year, we will continue to work with the Legislature to make sustainable reductions in spending and reduce corporate welfare without raising taxes."

Today’s ratings remain unchanged since the last bond issuance and refunding in February. However, since Governor Jindal took office in 2008, Louisiana has received eight credit rating upgrades among the three major credit-rating agencies. Louisiana's credit ratings are currently the strongest they have been in two decades.

Fitch stated that the rating reflects the fact that “the state has responded proactively to the revenue loss in fiscal 2015 and has twice adjusted expenditures to meet the revised revenue estimates.”