Arizona Credit Rating

About

States sell general obligation or tax revenue bonds to investors to pay for public works projects such as roads, schools and parks. Private, independent credit rating agencies, including Standard & Poor’s and Moody’s, evaluate states’ financial health to determine their ability to repay the principal and interest. They assign a rating to the bonds; the higher the grade, the lower the borrowing cost to taxpayers. The agencies upgrade, downgrade, suspend or withdraw ratings depending on the condition of a state’s economy and how well it is managing its finances. Rating agencies do not necessarily update a state’s credit rating on an annual basis


Standard & Poor’s Rating for the State of Arizona (Current  Rating 2018= AA)

     2015 = AA         2010 = AA-         2006 = AA
     2013 = AA-         2009 = AA-         2005 = AA
     2012 = AA-         2008 = AA         2004 = AA
     2011 = AA-         2007 = AA         2003 = AA-

Moody’s Rating for the State of Arizona (Current Rating 2019 = Aa1)

     Apr 2015 = Aa2         May 2010 = Aa2     Sep 2009 = Aa3
     Feb 2012 = Aa3         Apr 2010 = Aa2         Apr 2009 = Aa3
     July 2010 = Aa3         Dec 2009 = A1         Dec 2007 = Aa3

Standard & Poor’s Rating Scale

     AAA    Extremely strong capacity to meet financial commitments. Highest Rating.
     AA       Very strong capacity to meet financial commitments.
     A          Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions                    and changes in circumstances.
     BBB     Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.
     BBB-   Considered lowest investment grade by market participants.
     BB+      Considered highest speculative grade by market participants.
     BB        Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and                        economic conditions.
     B          More vulnerable to adverse business, financial and economic conditions but currently has the capacity to                        meet financial commitments.
     CCC    Currently vulnerable and dependent on favorable business, financial and economic conditions to meet                             financial commitments.
     CC      Currently highly vulnerable.
     C         Currently highly vulnerable obligations and other defined circumstances.
     D         Payment default on financial commitments.


*Note:
Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.


Moody’s Rating Scale

     Aaa    Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.
     Aa      Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
     A        Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.
     Baa    Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may                    possess certain speculative characteristics.
     Ba      Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.
     B        Obligations rated B are considered speculative and are subject to high credit risk.
     Caa    Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.
     Ca      Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of                          recovery of principal and interest.
     C        Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of                              principal or interest.

 


Note:
Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.
 

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Phoenix, AZ 85007

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