Arizona now has a positive credit outlook, which means the state continues to be on good economic footing.
S&P Global Ratings upgraded the Grand Canyon State’s outlook from “stable” to “positive” citing the state’s economy on the rise and keeping its AA issuer credit rating. According to a press release, that means there’s a “one-in-three” that the rating could increase “over the next two years.”
"The positive outlook reflects our view that strengthening reserves and ongoing revenue and expenditure management, supported by strong economic momentum that we expect will continue, could lead to upward rating potential should the state also demonstrate budgetary discipline that helps to mitigate future cyclical pressures on its finances.," S&P Global Ratings credit analyst Savannah Gilmore said in a statement.
Arizona is considered one of the fastest-growing states in the country in terms of both populations and businesses, particularly in Maricopa County.
However, S&P Global warned that the outlook could be demoted back to “stable” if “one-time” fixes for state government budget deficits happen or the state cannot “maintain structural balance.” The state tackled a $1.4 billion shortfall with cuts across the board with a budget passed in June.
