S&P Upgrades South Dakota To AAA Issuer Credit Rating

S&P Upgrades South Dakota To AAA Issuer Credit Rating

PIERRE, S.D. – Gov. Dennis Daugaard announced today that Standard & Poor’s has upgraded South Dakota’s issuer credit rating to AAA with a stable outlook, an improvement over the previous rate of AA+.

“This is great news for South Dakota! We now join a very exclusive group of states to which Standard and Poor’s has given a AAA rating, which is the highest rating possible,” said Gov. Daugaard. “We’ve worked hard to place our state on a firm financial footing, and that stewardship has paid dividends.”

Credit ratings give potential bond purchasers a measurement of state performance and credit worthiness. Upgrades typically allow issued bonds to carry a lower interest rate, providing interest savings to issuers like the Building Authority.

Universities, state parks and taxpayers may save money because of the upgrade. The rating comes as the South Dakota Building Authority prepares to issue $11.5 million in bonds for the phase two improvements in Custer State Park.

In their release of the rating, S&P confirmed their confidence in upgrading the state to AAA, highlighting the state’s consistently strong financial position and rainy day funds, a historical record of conservative budgeting, and new improvements in the state’s financial planning processes and long-term budget forecasting.

S&P also cites the state’s recent improvements to its pension program funding and the elimination of unfunded liabilities and post-employment benefit liabilities.

“The upgrade of our bond rating will give the financial markets affirmation of our state’s exceptional credit worthiness and save the state substantial amounts in future interest payments,” Gov. Daugaard said.


6 thoughts on “S&P Upgrades South Dakota To AAA Issuer Credit Rating”

  1. One of the very few things I disagree with Gov. Daugaard about. Since the crash occurred and we all found out the rating agencies had been lying to us for years, ratings carry far less importance than they used to. Leverage has a place, especially when rates are historically low. Pre-paying debt to get a higher rating will save us less than updating infrastructure with the cash would have.

  2. MHS
    Yes and no. Once interest rates do raise and they will once this economic disaster “recovery” presented by Obama and the democrats does end. Having this rating will help greatly. Pay debt down when times are good and use your equity and cash flow and reserves when times are bad or less certain. You can never go wrong paying off debt. We can pay cash for infrastructure as opposed to interest.

    Worse economic growth since accurate numbers have been recorded.

  3. I agree with MHS and Ymous.

    Ymous: Aggressive paydown saves money long-term from lower borrowing costs plus access to capital when most can’t get capital.

    MHS: Using capital today which generates a future return in excess of the cost is making wise investment.

    The challenge is balancing the two.

  4. This economy is nearly fully recovered from when one political party drove it in the ditch and left it nearly dead with a trillion plus dollar war not even on the books. Stock market is at an all time high. Only the “chronically contrary” would criticize the progress we liberals bring every time we’re in charge. Conservatives … don’t even ask for the keys to the economy back because you clearly can’t be trusted. PS – the people who’ve “given up looking for work” are the newly retired who now have affordable health care insurance and don’t have to work just for the insurance coverage any longer. LWIY (last word is yours) that means you, anonypuss

    1. Porter, were your comments delved from Daily Kos or Media Matters?


    2. Porter
      Please, just check the economic data. There is very little growth in wages and jobs. Stock Market indexes are not helping the poor and middle class (if you buy into 401k increases equal confidence) maybe, but 70 percent of spending is consumer based. Meaning jobs and raising wages would help growth more. Facts are stubborn things to refute little man.

Comments are closed.