NEW YORK CITY — Fitch Ratings, a credit rating agency, recently announced that Florida’s credit rating is at the top of their rating system with a score of AAA. Conversely, the nation’s credit rating dropped to AA+.
In the announcement, Fitch cited Florida’s population boom through migration as one of the reasons for the Sunshine State’s rating continuing to remain high.
“Population growth has traditionally fueled the Florida economy, particularly construction and real estate, and the state projects continued strong gains despite slowing international migration,” Fitch’s report said. “Net domestic migration surged during the pandemic, contributing to 18.3% population growth from 2010 to 2022, far surpassing national growth of 7.9%.”
Three of the “key rating drivers” identified by Fitch where Florida shines are Expenditure Framework, Long-Term Liability Burden and Operating Performance – which all received AAA ratings.
Florida Governor Ron DeSantis said that Florida paying down its debt has been a positive influence on the state’s upward trajectory.
“Today’s announcement reinforces that Florida’s track record of conservative policy, early debt repayment and strong reserves is the blueprint for states and the federal government to follow,” said Governor Ron DeSantis in a statement last week.
He added: “As excessive spending and irresponsible governance ballooned our nation’s debt to the detriment of its credit rating, Florida remains the standard-bearer for smart fiscal policy.”
