A global finance organization just upgraded South Dakota’s credit rating. The improved rating helps the state pay lower interest rates on loans.
The Fitch Group bumped South Dakota’s issuer default rating from a AA+ to a AAA. This is the highest ranking offered by the financial group. The change affects $143 million in bonds issued by the South Dakota Health and Education Facilities Authority. Ernie Goss is the Economics Chair at Creighton University. He says the ranking is quite an accomplishment for the state.
“I think chiefly that your government has not made promises for future generations and future retirees they can’t fulfill. So the pension system is in good condition and that’s not true for most states. Lot of it also has to do with South Dakota’s very favorable taxing and spending policies that have been very favorable over the years,” says Goss.
Goss says having a high rating is like having a good credit score and will benefit the taxpayer. He also says South Dakota might run into some problems with the struggling agriculture sector.