Tennessee gets top rankings from all 3 bond rating agencies

Friday, May 27, 2016, Vol. 40, No. 22

NASHVILLE (AP) - Tennessee has received the top ranking from all three major credit rating agencies.

The state had held top ratings from Moody's Investor Services and Fitch since 2010, but has now added a AAA rating from Standard and Poor's after a mid-year upgrade.

Standard and Poor's cited the state's improving economy, growing reserves and sound management of liabilities in bumping up the rating.

Better bond ratings make it cheaper for the state to borrow money.

Republican Gov. Bill Haslam in a statement Thursday called the top ratings a "historical accomplishment" that reflects the state's conservative fiscal strategy. Tennessee last held top ratings from all three agencies in 2000.

Haslam in last year's meetings with ratings agencies touted his plans to privatize more maintenance work at state buildings.