CHARLESTON — S&P Global Ratings has upgraded West Virginia’s credit outlook from stable to positive while affirming the state’s AA- rating on general obligation debt, citing strong fiscal management and consistent budget surpluses.
“This positive rating action affirms my administration’s approach to our budget and West Virginia’s long-term financial health,” Gov. Patrick Morrisey said in a statement Friday. “Our future is bright, with employment forecasted to continue to grow over the next several years, but we cannot ignore the medium- and long-term budget pressures that exist.”
Morrisey called the move “the first positive rating action by S&P regarding West Virginia’s creditworthiness in more than a decade,” crediting his administration’s focus on fiscal responsibility, balanced budgets, and government efficiency.
In its report, S&P said its decision reflects the state’s “recent run of large budgetary surpluses, multiple ample reserve funds, and management actions to control costs.” The agency added that West Virginia’s leadership has demonstrated an ability to maintain structural balance and healthy reserves even as federal policy changes pose potential fiscal challenges.
“The state budgets conservatively and tracks revenue and expenditures monthly, maintains a six-year financial forecast, and maintains investment and reserve and liquidity policies,” the report said.
S&P also highlighted West Virginia’s labor market outlook, projecting total employment growth of 0.6% between 2025 and 2028, which it described as a positive indicator for the state’s economy.
According to the report, West Virginia’s management “has, when needed, made spending reductions, and gap-closing solutions are generally focused on structural budget balance rather than on nonrecurring revenue or expenditure actions.”
S&P’s latest action suggests West Virginia could be on track for a future credit rating upgrade if current fiscal trends and budget discipline continue.
