Fitch raises Oklahoma's rating a notch to AA-plus

Oklahoma scored its third bond rating upgrade since 2024 on Thursday with Fitch Ratings boosting the state's issuer rating to AA-plus with a stable outlook from AA.

The move followed one-notch upgrades by S&P Global Ratings to AA-plus in March 2025 and Moody's Ratings to Aa1 in 2024. The state was given positive outlooks from all three rating agencies ahead of the upgrades.

Fitch said its upgrade "reflects sustained improvements in fiscal management, evidenced by the state's continued adherence to conservative budgeting practices and dedicated operating reserves stabilized materially above the pre-pandemic trend."

It added that the higher rating takes into account Oklahoma's low long-term liability burden and very strong operating performance, balanced against "the state's still sizable concentration in natural resource development industries, which constrains longer-term revenue growth prospects and contributes to elevated revenue volatility."

"Fitch expects Oklahoma's robust reserve position to provide meaningful cushion against potential revenue declines," Fitch's rating report said.

Gov. Kevin Stitt's proposed fiscal 2027 budget projects the state will end the current fiscal year with $1.776 billion in reserve funds and nearly $1.53 billion in unspent cash, along with more than $1 billion in other fund balances.

Oklahoma State Treasurer Todd Russ said the upgrade "reflects the steady work Oklahoma has done to strengthen its financial foundation and diversify our economy."

"Since taking office, we have prioritized responsible financial management and building strong reserves so our state can weather uncertainty while continuing to create opportunities for Oklahoma families and businesses," he said in a statement. "A strong balance sheet today helps ensure Oklahoma remains competitive and well-positioned for growth well into the future."

Fitch also raised the rating to AA from AA-minus on lease revenue bonds issued by the Oklahoma Capitol Improvement Authority and the Oklahoma Development Finance Authority and backed by annual state appropriations.