Fitch Ratings this week revised its outlook on Kansas' bond ratings to positive from stable, citing the state's trend of improved expenditure control and resilience.
This is the second positive outlook for Kansas this year after Moody's Ratings
Fitch, which released its first issuer default rating for the state in January 2024, affirmed that AA rating Tuesday and assigned its AA-minus rating to the Kansas Development Finance Authority's upcoming sale of $128 million of appropriation-backed revenue bonds.
"Kansas built its budget stabilization fund to new highs while gradually reducing reliance on non-recurring budget and cash-flow measures," Fitch said, adding it believes "the state retains robust gap-closing capacity derived from its unlimited revenue-raising powers and solid spending flexibility."
Gov. Laura Kelly said on Wednesday the two positive rating outlooks recognize "the hard work and discipline it took to climb out of the fiscal hole the previous administration had dug."
The Democratic governor will leave office in January after serving two terms. Term limits would have barred a third term.
She followed Republicans Sam Brownback and Jeff Colyer; Brownback's seven-year run, marked by tax cuts and imbalanced budgets,
Most of Brownback's tax cuts
Kelly noted under her administration the state built up a $2 billion rainy day fund, paid down debt, and used one-time funds for one-time projects.
"Kansas is in the best financial position it has been in more than a decade, but it is not a position we are guaranteed to maintain," Kelly said in a statement. "I urge Kansans to hold elected officials accountable to maintain our positive trajectory instead of ushering in a return to the days of crumbling roads, four-day school weeks, and budgetary gimmicks."
The state lost its positive outlook for its AA-minus issuer and other ratings from S&P Global Ratings, which revised it to stable in March 2025. The rating agency attributed the move to "an evolving budget environment created by the state's recently enacted tax relief package," as well as potential Trump administration policies that could dampen economic growth and pressure finances.
