Little Rock, Arkansas – The State of Arkansas has reached a new financial milestone as two of the world’s most respected credit rating agencies offered favorable assessments of its fiscal health. S&P Global Ratings upgraded the state’s long-term rating on general obligation bonds to AA+, marking the highest level for Arkansas since 1966, while Moody’s Ratings reaffirmed the state’s Aa1 issuer rating.
These elevated ratings are more than symbolic—they significantly improve the state’s ability to issue bonds affordably, which will be especially beneficial as Arkansas prepares a $25 million bond issuance through the Arkansas Natural Resources Commission for irrigation, water, and wastewater projects.
“Good leadership matters, and when Arkansas is able to cut taxes, invest in priorities, and grow our reserve funds – all at the same time – it just proves that our conservative economic agenda is working,” said Governor Sarah Huckabee Sanders. “Today’s announcement is more than just a seal of approval on our financial discipline; it also shows potential investors that we are an excellent state for their business.”
State officials credit this financial momentum to prudent planning, targeted tax cuts, and a strong economic outlook. Department of Finance and Administration Secretary Jim Hudson noted that the discussions with S&P and Moody’s focused on several key economic drivers.
“In our conversations with both S&P and Moody’s we pointed to the strength of the state’s balance sheet, including the addition of the $1 billion Arkansas Reserve Fund, Governor Sander’s leadership in cutting taxes by more than 20% in just two years, our growing steel and lithium industries, and the booming metropolitan area in Northwest Arkansas,” Hudson explained. “S&P’s and Moody’s ratings tell us that we are on the right track in Arkansas.”
As the state capitalizes on a healthy reserve fund and diversified economic growth, Arkansas positions itself as a national model for financial stewardship—fiscally strong, investor-ready, and looking ahead.
