Fitch affirms ‘AAA’ rating for Florida after downgrading federal credit rating

Fitch Ratings has affirmed a “AAA” credit rating for the state of Florida on Wednesday after downgrading the federal government’s credit rating earlier this month.

The U.S. government’s rating was struck down to AA+ from AAA, which is the highest possible rating. The new rating still constitutes a high investment grade.

Fitch cited issues with political divisions and increased federal spending as the cause of the downgrade.

However, Florida was affirmed at the AAA rating due to due to its “history of sound financial management practices, high gap-closing capacity and reserves, and low long-term liability,” Fitch Ratings reports.

Florida now has a better bond rating than the entire country. Proof that prudent spending and debt reduction matters. It’s why Florida’s in the best fiscal health in state history. Great job, @GovRonDeSantis. The Biden Administration is a complete failure. #FlaPol pic.twitter.com/2pZ0bUWs0O

— Jimmy Patronis (@JimmyPatronis) August 17, 2023