While it may have relied heavily on one-time revenues to end political gridlock and strike a budget agreement last year, Minnesota maintains strong financial policies and has a solid track record of making timely budget adjustments as needed, Standard & Poor’s said in a special report.
The report, “State Review: Minnesota,” outlines the factors supporting the state’s AA-plus rating and stable outlook. S&P downgraded the state from AAA last year.
“Minnesota maintains a moderate debt burden by all measures and adheres to well-established debt management guidelines,” said Standard & Poor’s analyst Henry Henderson.
Minnesota has fared reasonably well through the Great Recession with less job losses than the nation as a whole and a lower unemployment rate.
In addition, Minnesota’s metropolitan centers are home to significant employers, including headquarter locations for major corporations.