Arkansas has received a major financial boost as S&P Global Ratings upgraded the state’s long-term credit rating to AA+, the highest level since 1966. In a parallel announcement, Moody’s Ratings reaffirmed the state’s Aa1 issuer rating, signaling continued financial stability.
The improved ratings reflect confidence in Arkansas’ fiscal health, citing strong budget management, a robust reserve fund, and a growing economy. Governor Sarah Huckabee Sanders celebrated the announcement, calling it a “seal of approval” on her administration’s conservative economic strategy.
Secretary of the Department of Finance and Administration Jim Hudson pointed to key economic strengths discussed with the rating agencies, including the $1 billion Arkansas Reserve Fund, rapid tax reductions, and growth in industries like steel and lithium.
The upgraded credit rating will immediately benefit the state as it prepares to issue $25 million in bonds through the Arkansas Natural Resources Commission, funding vital irrigation, water, and wastewater projects across the state.
