News & Events

Ohio Governor Mike DeWine, Lt. Governor Jon Husted, and Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced that S&P Global Ratings upgraded the state’s issuer default and general obligation bond ratings to “AAA,” citing Ohio’s demonstrated commitment to active budget management, building and maintaining reserves, significant state-supported economic diversification efforts, and a belief that the state can maintain better credit characteristics than the U.S. in a stress scenario.

This is the first time that Ohio has been rated “AAA/Aaa” by all three rating agencies.

“Achieving this rating from not just one, but all three major credit agencies is historic,” said Governor DeWine. “This remarkable financial milestone underscores that Ohio is at the forefront of financial excellence and economic innovation. Our strategies are yielding tangible benefits, making Ohio a prime destination for businesses and families.”

In just over one year, S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings upgraded Ohio’s issuer default and general obligation bond ratings to the highest ratings possible: “AAA/Aaa/AAA.”

“This third Triple-A rating is a testament to Ohio’s unmatched economic strength and fiscal responsibility," said Lt. Governor Jon Husted. "Our budgetary leadership, combined with strategic investments in diverse sectors, has paid off immensely. We’re not just maintaining a balanced budget, we are fostering a flourishing economy that promises limitless opportunities for every Ohioan, now and in the future.”

“Under Governor DeWine’s visionary leadership, Ohio has reached new heights in financial stability and economic growth,” said Kimberly Murnieks, director of the Ohio Office of Budget and Management. “Our state’s financial foundations are more robust than ever, paving the way for continued prosperity and growth. Ohio’s journey of strategic and intentional financial planning has led us to this pinnacle of success and has firmly established our state as a leader in fiscal management. All Ohioans will benefit from the cost savings that will be realized by achieving the ‘Triple-A Triple Crown.’"

The S&P Global Ratings “AAA” credit upgrade comes exactly one week after Moody’s Investors Service elevated Ohio’s rating to “Aaa” and one year after Fitch Ratings upgraded the State to “AAA.”

Ohio’s “AAA/Aaa” ratings upgrade comes in connection with the state’s planned issuance of approximately $393 million in General Obligation Refunding Bonds expected to price the week of December 12.

Simultaneously with the change to Ohio’s issuer rating, S&P Global Ratings raised its long-term rating on the State of Ohio’s general obligation (GO) bonds to “AAA” from “AA+,” assigned the “AAA” long-term rating to the State of Ohio’s approximately $391 million series 2023 refunding bonds, raised its long-term rating on the tax credit bonds issued by the Columbus-Franklin County Finance Authority to “AA” from “AA-,” raised the dual rating on the state’s GO debt outstanding to “AAA/A-1+” from “AA+/A-1+,” and raised its dual rating on the state’s lease-appropriation debt to “AA+/A-1+” from “AA/A-1+.”

Moody’s Investors Service Friday lifted Ohio’s issuer default and general obligation ratings to triple-A based on strong  financial management and an economy that’s “poised for diversification and growth.”

The state now boasts the coveted top issuer rating from Moody’s and Fitch Ratings, which upgraded it in September, 2022. S&P Global Ratings pegs the state one notch below the top mark at AA+ with a stable outlook.

Moody’s upgrade reflects Ohio’s “sound budgetary and financial management,  highlighted by a trend of strong and growing reserves and liquidity, and affordable fixed costs associated with Ohio’s low and declining leverage,” the agency said in the upgrade report.

Though the state’s economic and demographic trends have typically lagged the nation and “that will not change rapidly,” Moody’s predicted that “recent major investments related to electric vehicles and microchips will drive growth in high paying manufacturing jobs.”

Moody’s last rated Ohio with its highest credit rating in 1979, according to the state.

Republican Gov. Mike DeWine called the upgrade “strong external validation that our strategy is delivering results for Ohio. I am proud that our record shows we are the best state to live, grow or start a business, and raise a family.”

The upgrade affects $6.7 billion of Moody’s-rated GO bonds, which includes $864 million of highway capital improvement bonds that feature a GO pledge. The ratings agency also upgraded $2.9 billion of outstanding lease appropriation bonds and certificates of participation to Aa1 from Aa2.

Moody’s lifted several other state-related credits, including $879 million of Garvee bonds issued by the Ohio Department of Transportation.

“Our finances are stronger than at any time in history, our economy is surging ahead, and our budget is focused on ensuring that all corners of Ohio grow,” said Ohio Office of Budget and Management Director Kimberly Murnieks in a statement. “We have reduced taxes and invested in results, and our priorities will continue to provide unlimited opportunities for Ohioans.”

The upgrade makes Ohio the 17th state that’s rated Aaa by Moody’s.

Moody’s Investors Service last rated Ohio with its highest credit rating in 1979.

(COLUMBUS, Ohio)— Ohio Governor Mike DeWine, Lt. Governor Jon Husted, and Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced today that the credit rating agency Moody’s Investors Service upgraded Ohio’s Issuer Rating to “Aaa” from “Aa1” citing a “continuing trend of very strong financial management, improving reserves and liquidity, low and declining leverage and a state economy that is poised for diversification and growth.”

“Moody’s decision to upgrade Ohio’s rating to ‘Aaa’ is strong external validation that our strategy is delivering results for Ohio,” said Governor DeWine. “Ohio is the heart of it all, and I am proud that our record shows we are the best state to live, grow or start a business, and raise a family.”

“Ohio’s economy and the state’s financial footing are both stronger than ever before and we will keep building on our winning record into the future,” said Lt. Governor Husted. "This is the most success that Ohio has achieved in decades and our progress is built on careful, intentional planning that is paying off. This upgrade from Moody’s is more proof that our state is fiscally strong and expertly managed.”

“Under Governor DeWine’s leadership, Ohio continues to build on our record of success," said Director Murnieks. "Our finances are stronger than at any time in history, our economy is surging ahead, and our budget is focused on ensuring that all corners of Ohio grow. We have reduced taxes and invested in results, and our priorities will continue to provide unlimited opportunities for Ohioans – today and for generations in the future.”

Ohio’s “Aaa” long-term Issuer Rating reflects a trend of positive demographics that Moody’s expects “to continue as the announced economic development projects come online over the medium term. The outlook also incorporates the state’s strong financial position, including its purposeful efforts to build reserves and budget conservatively that will support Ohio’s strong credit quality going forward.

The Moody’s “Aaa” credit upgrade comes one year after the organization elevated Ohio’s credit outlook to positive and Fitch Ratings upgraded the State Issuer Default Rating to “AAA.”

Ohio’s “Aaa” rating upgrade comes in connection with the State’s planned issuance of approximately $393 million in General Obligation Refunding Bonds expected to price the week of December 12.

Simultaneously with the change to the State’s issuer rating, Moody’s upgraded the general obligation bonds including the GO highway program to “Aaa” from “Aa1”, lease appropriation debt and certificates of participation (COPs) to “Aa1” from “Aa2”, the Ohio Community and Technical College Credit Enhancement and Ohio School District Credit Enhancement programs to “Aa1” from “Aa2”; and the rating on the Ohio Department of Transportation (ODOT) Federal Grant Anticipation Program’s outstanding Major New State Infrastructure Project bonds, also known as GARVEE bonds.

Moody’s Investors Service has affirmed the State of Ohio’s Aa1 Issuer Rating and revised the state’s outlook to positive from stable.

Ohio Governor Mike DeWine, Lt. Governor Jon Husted, and Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced today that Fitch Ratings upgraded Ohio’s long-term Issuer Default Rating (IDR) to “AAA” from “AA+”.

Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced the Ohio Public Facilities Commission closed on the refinancing of $185 million of outstanding general obligation debt, achieved $38 million in cash flow savings, and reduced interest costs to 1.22 percent from 4 percent.

The “refunding” bonds for debt originally issued in 2012 benefited from a historically low interest rate environment, sizable investor demand, and Ohio’ strong (AA+/Aa1/AA+) General Obligation credit ratings, which gained momentum earlier this summer when Fitch Ratings elevated the State’s rating outlook from “Stable” to “Positive.”

On a cumulative basis for the calendar year, OBM’s debt savings initiatives will save the General Revenue Fund (GRF) $260 million in cash flow in future fiscal years.

“I’m proud that our efforts have saved Ohio tax dollars this year and into the future. We achieved these results due to the State’s strong economic recovery, our ability to pay off some debt early, and our high-quality credit rating. Ohio is well-managed with strong leadership and conservative fiscal practices and investors notice – our fall transaction was five times oversubscribed”, said OBM Director Kimberly Murnieks.

Pricing alongside the refunding bonds, the OPFC sold $181.2 million of “new money” Infrastructure and Conservation bonds at an all-in interest rate of 2.02 percent.

The infrastructure sale supports grants and loans to local governments for investment in roads, bridges, and water and sewer systems. Proceeds from the sale of Conservation bonds, are utilized for green space preservation, recreational trails at Ohio’s state parks, and to protect and preserve farmland.

Citigroup served as senior managing underwriter along with KeyBanc Capital Markets as designated co-senior manager. PFM Financial Advisors LLC. provided financial advisory services.

Governor DeWine serves as chairperson of the OPFC while the OBM director serves as secretary. Additional members include  representatives from the Treasurer of State, Auditor of State, Secretary  of State, and Attorney General.

Ohio’s Bond Rating and Outlook at Highest Level in 42 Years

OBM Announces Robust Monthly Preliminary Revenue Data

(COLUMBUS, Ohio) – Office of Budget and Management (OBM) Director Kimberly Murnieks announced today that Fitch Ratings, citing the state’s superior financial resilience, affirmed the state’s Issuer Default Rating (IDR) at “AA+” and elevated the state’s outlook to Positive from Stable. The “AA+” rated (Positive) outlook indicates the state’s low default risk and is one notch below Fitch’s highest credit quality rating of “AAA.”

“Fitch’s decision to upgrade Ohio’s bond rating outlook to Positive is proof that the state of Ohio’s financial management is solid and our economy is surging forward. We took the hard and necessary steps to do what is right for Ohioans, and for our communities. And we are seeing results. Ohio is the first, and so far the only, ‘AA+’ rated state to have its outlook elevated to Positive by one of the three major ratings agencies since the pandemic began,” said Ohio Governor Mike DeWine. “Ohio is the best state to grow your career, to expand your business or to start a new one, and to raise a family.”

“An improved bond rating outlook is a message that Ohio is managed well, it is a great place to invest and has a bright future,” said Ohio Lt. Governor Jon Husted. “It’s just another piece of evidence that Ohio and the Ohio economy are strong as we emerge from the pandemic and prepare for the future.”

“This rating outlook change is strong third-party validation of Ohio’s robust financial position and of Governor Mike DeWine’s proactive management of the state’s finances and economy throughout the turbulent global conditions caused by the pandemic. The decisive actions taken by Governor DeWine starting in February of 2020 to protect Ohioans and control state government spending, prioritizing saving lives to save our economy, worked,” said OBM Director Murnieks.

The Fitch report states, “Outlook revision to Positive from Stable reflects Ohio’s sustained trend of balanced finances and growth in reserves that strengthens the state’s financial resilience as it confronts cyclical economic and revenue trends.” The report further cites Ohio’s “superior financial resilience that allowed it to absorb the immediate budgetary effects of the economic downturn.”

The rating action is Fitch’s first change in 11 years when Ohio’s IDR was upgraded from “AA” to “AA+” in 2010. This action represents the highest rating level for Ohio’s IDR by any of the three main rating agencies since 1979.

In connection with the IDR update, Fitch also rated an upcoming issuance of $56.5 million State of Ohio (Treasurer of State) Series 2021A Capital Facilities Lease-Appropriation Bonds (Cultural and Sports Facilities Building Fund Projects) as “AA” Positive outlook and affirmed the ratings and revised outlooks to Positive on Ohio’s “AA+” General Obligation bond rating, “AA” on outstanding appropriation-backed bonds, the “AA” Ohio School District Credit Enhancement Program Rating, and the “A+” PPP Grantor Counterparty rating assigned to the Ohio Department of Transportation’s Portsmouth Bypass project payment obligations.

The Fitch report citing Ohio’s superior financial resilience is available here.

See additional articles:

• https://www.dispatch.com/story/opinion/2021/08/15/thomas-suddes-kudos-dewine-ohio-gets-boost-credit-rating/5569063001/
• https://www.bondbuyer.com/news/ohio-snags-positive-outlook-from-fitch-ratings

Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced that the Ohio Public Facilities Commission (OPFC) in partnership with OBM’s Capital Markets Team completed the sale of $597 million of Common Schools and Higher Education bonds.

The sale supports capital projects at K-12 schools, colleges and universities around Ohio. The transaction included a $148 million refinancing of debt issued in 2011 and 2013 and will produce $46 million of cash flow savings between fiscal years 2021 and 2033.

The sale priced with an all-in-interest rate of 2.02% and the State achieved attractive pricing as a result of its strong credit ratings (AA+/Aa1/AA+), sizable investor demand generating 5 times more orders than supply, and a low rate environment.

Bank of America Securities served as senior managing underwriter with Loop Capital Markets serving as co-senior manager. Acacia Financial Group, Inc provided Financial Advisory services.

“This spring deal accelerates our year of recovery, which allows for additional support to Ohio’s communities and economy. On behalf of Governor Mike DeWine, OPFC, and OBM, we have achieved measurable results in the marketplace,” said OBM Director Kimberly Murnieks.

Governor DeWine serves as Chairperson of the OPFC while the OBM Director serves as Secretary. Additional members include representatives from the Treasurer of State, Auditor of State, Secretary of State, and Attorney General.

Ohio Achieves $363.6 Million in Cash Flow Savings for Fiscal Year 2021

Largest deal in Ohio history underwritten by minority business enterprise

(COLUMBUS, Ohio) – Ohio Office of Budget and Management (OBM) Director Kimberly Murnieks announced today that the Ohio Public Facilities Commission (OPFC) closed the sale of State of Ohio General Obligation debt in a remarkable transaction that achieved hundreds of millions of savings and was led by a minority-owned firm.

Loop Capital Markets served as senior managing underwriter on the Ohio Public Facilities Commission $780 million refunding transaction. Acacia Financial Group, a certified Women’s Business Enterprise by the Women’s Business Enterprise Council, served as Financial Advisor. Morgan Stanley & Co served as co-senior underwriter. Additional syndicate members included BofA Securities, Citigroup, Huntington Securities, Inc., J.P. Morgan, and KeyBanc Capital Markets Inc.

This historic collaboration of public and private sector partners produced $363.6 million in cash flow savings for fiscal year 2021 at an extremely advantageous interest rate of 1.54%, which is among the lowest rate of OPFC debt issued to date. The sale was also the largest conducted with a minority-owned underwriting firm and with a women’s business enterprise.

“This global COVID-19 pandemic continues to impact our communities and economy. However, on behalf of Governor Mike DeWine, OPFC, and OBM, we have secured a notable success in the marketplace. We are particularly proud to report that a minorityowned business enterprise led part of this achievement,” said OBM Director Kimberly Murnieks.

Governor DeWine serves as Chairperson of the OPFC while the OBM Director serves as secretary. Additional members include representatives from the Treasurer of State, Auditor of State, Secretary of State, and Attorney General’s Office.

Refinancing of Veterans Bonds Generates Savings for Ohio Taxpayers

Ohio Office of Budget and Management and Ohio Public Facilities Commission announce $2.0 million in savings

(COLUMBUS, Ohio) – The Office of Budget and Management announced today that it has completed a $25 million refunding of outstanding debt related to the Veterans Compensation Bonds issued in 2010 and 2011. The refunding, prompted by current favorable levels of interest rates, saves Ohio taxpayers $2 million and lowers the cost of borrowing to 1.83% from 4.59%.

“Similar to how thousands of Ohioans take advantage of lower interest rates to refinance their homes, the state of Ohio refunds bonds to lower its payments.  The Office of Budget and Management is always looking for ways to reduce the state’s future debt service obligations for taxpayers.”  Director Kim Murnieks_._

The Bonds, formally issued by the Ohio Public Facilities Commission, were authorized by voters in 2009 to make payments to eligible military veterans or to their surviving immediate family. In the past, such payments have been made to those who served in Operation Desert Storm and Iraq, and eligibility continues for those who serve in Afghanistan.

The Department of Veterans Services oversees the program. Interested individuals are encouraged to visit www.veteransbonus.ohio.gov for more information.

Additional Resources:

• For additional information about State of Ohio debt management, please view the Bonds and Investors page.

• Visit the Office of Budget and Management news and events page and join the conversation on Facebook, Twitter, and LinkedIn.

Ohio issued $300 million dollars in bonds to finance school construction receiving a 20-year financing rate of 2.35% - its lowest ever.