Missouri gets AAA rating on general obligation debt

Missouri's general obligation debt received the highest possible rating from Standard & Poor's, the bond rating agency said Dec. 21.

Missouri's general debt received the AAA rating, while the state's certificates of participation and leasehold revenue bonds are rated one notch lower at AA+.

Standard & Poor's cited four factors in its high rating for the state: a strong and diverse economic base; good financial management with required midyear budget cuts to preserve financial balance; strong reserves; and a low debt burden.

"In our view, the Missouri economy's greatest strength is its diversity, which is based partially on the state's location at the geographic center of the nation," the bond rating agency said in its report. "This gives it an economic advantage in trade and manufacturing."

The agency also touted Missouri's increased education spending in the fiscal 2010 budget despite the nationwide recession, as well as the state's use of $1.2 billion in federal stimulus money for projects across the state including highway improvements and educational facilities.

Missouri also received a AAA bond rating from Fitch's Ratings in September.

"The fact that yet another rating agency has given Missouri the highest possible bond rating is even more proof that our budget is being handled conservatively and with the greatest level of accountability for the future," Gov. Jay Nixon said in a news release.

Standard & Poor's classified the state's outlook as stable, saying it expects that Missouri will maintain a "high level of reserves and good financial management, with early and decisive budgetary cuts in the event that future revenues do not meet projections."[[In-content Ad]]