Rating Agencies Downgrade Nevada to “Stable Outlook,” Reaffirming Economic Recovery; unemployment remains highest in the country | News from Carson City, Nevada
The state of Nevada has received rating improvements on its general limited tax obligations from Fitch Ratings, Moody’s Investor Services and S&P Global Ratings, Governor Steve Sisolak and Nevada State Treasurer Zach Conine announced on Friday.
With the action, the three major rating agencies brought Nevada down to a “stable outlook,” reaffirming the state’s highest credit ratings in history, according to a press release from the governor’s office.
Upgrading ratings is a key indicator that Nevada’s economic recovery from the COVID-19 pandemic is well underway due to fiscal responsibility and a revitalized tourism and hospitality industry.
Nevada, however, still has the highest unemployment rate in the country. Statewide unemployment in August was 7.7 percent. California’s unemployment rate is 7.5% and New York’s 7.4%.
The various agencies cited fiscally responsible budget decisions made by the governor and the Nevada State Legislature during the pandemic, as well as long-term planning with federal funding through the “Every Nevada Recovery Framework” as reasons for the upgrades. at the level.
“Throughout the pandemic, the people of Nevada have faced significant financial hardship and have been forced to make tough choices,” Governor Sisolak said in the press release. “These improvements in Nevada’s credit rating show that we made the right financial decisions for our state during the pandemic and are now on the road to recovery. Now we can continue to get Nevadans back to work as we seek to create thousands of high paying jobs. ”
“Nevada was one of the hardest hit states during the pandemic, and thanks to our resilience, we are in the midst of our economic recovery,” Treasurer Conine said in the statement. “With the injection of $ 6.7 billion from the federal government, we have a responsibility to invest these funds in the state building that Nevadans deserve, so that the devastating effects of the pandemic do not happen again. ”
On July 19, Moody’s Investors Service revised Nevada’s rating outlook from negative to stable, while upholding the Aa1 rating on outstanding government general bonds (GO) and the Aa2 rating on certificates of participation (COP ) current rental income.
Similarly, on September 22, 2021, S&P Global Ratings and Fitch Ratings both revised their outlook from negative to stable on outstanding Nevada General Bonds and confirmed their long-term “AA +” rating on bonds, according to the press release. .