State Treasurer Dale R. Folwell Statement on Importance of Moody's Ratings Upgrade

Agency Praises NC as 'one of the strongest states according to every measure.'

Raleigh, NC

Sep 12, 2024

Moody's Ratings recently upgraded the credit rating of the State of North Carolina's GARVEE bonds and that is just one more indicator that our state is fiscally sound, well managed financially, and a beacon to the nation of economic growth dependent on transportation progress. These bonds, formally known as Grant Anticipation Revenue Vehicle Bonds, are issued by the state on a short term in anticipation of reimbursement of federal highway aid grant revenue. The state has about $846 million in outstanding GARVEE debt. Moody's, one of the Big Three credit rating agencies, upgraded the state's bond rating from Aa2 to Aa3, citing "the credit strength of the state" under newly revised methodology that places more prominence on credit consideration. A better credit rating allows the state to accelerate transportation construction timelines at lower cost to taxpayers. It is no surprise the agency praised North Carolina as "one of the strongest states according to every measure," with a gross domestic product of $794 billion. Strong legislative leadership has resulted in $26 billion in reserves, with long-term liabilities of 52.3% of revenue being the ninth lowest of any state. We are proud of the work we do every day at the Department of State Treasurer to maintain shrewd monetary management that helps to maintain our robust economy.

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