(Reuters) – Standard & Poor’s Ratings Services raised its issuer credit rating on South Dakota to “AAA” from “AA+”, citing the state’s consistently strong financial position, “rainy-day funds” and a historical record of conservative budgeting.
The upgrade also incorporates recent legislative and executive measures to formalize aspects of South Dakota’s budget planning and monitoring processes, Standard & Poor’s credit analyst Sussan Corson said. (http://bit.ly/1K8T4pA)
The rating agency’s outlook on the state is stable, reflecting its positive revenue trends, strong gross state product and personal income growth relative to the nation.
The recent legislative changes to the allocation of budgetary surplus has effectively established minimum reserve levels, Standard & Poor’s said.
(Reporting by Kanika Sikka in Bengaluru; Editing by Ted Kerr)