Fitch

"Pennsylvania's positive outlook is based on the significant increase in budget reserves over the past three fiscal years to levels consistent with higher-rated peers," Moody's said.

"The improved rating outlooks are critical for the Power Authority to ensure that we can continue leveraging the capital markets," said NYPA President and CEO Justin E. Driscoll.

Florida led the nation in payroll growth in July, Wells Fargo said in a Friday report, which noted most of the upturn was in the healthcare and professional and the scientific and technical services sectors while leisure and hospitality shed jobs.

"The limited scope of muni debt affected suggests a marginal impact on the muni market, if any," BofA strategists said.

While it's still relatively early to tell how much — if at all — the muni market will be impacted, Kara South, portfolio manager at GW&K Investment Management, said downgrades of certain municipal bonds are likely to follow.

Most states continue to fare well, despite economic shocks and weakening revenue growth.

Fitch said its upgrade of Kentucky's IDR "reflects material improvements to Kentucky's fiscal reserves since 2020 as a result of improved budgetary discipline.

"When the rating agencies developed and rolled out their ESG scores, they said their ESG scores would not impact an issuer's credit rating. We are holding them to their word," said Ben Watkins, director of the state Division of Bond Finance.

The bulging surpluses are a result of $5 trillion in economic stimulus from the federal government including American Rescue Plan Act (ARPA) funds which boosted economic activity and tax revenues.

Inflationary-driven challenges pose a drag on hospitals’ fiscal recovery from the pandemic with short-, mid-, and long-term action needed.

Governance is the single most important ESG factor in public finance ratings, given the impact of governance structure, Fitch said.

“Compromised systems can directly affect public finance entities in the near term,” says Fitch's Omid Rahmani, citing ransomware risks.

Entering the third year of a pandemic, higher education is expected to gain stability amid a flood of federal aid.

If enacted, Build Back Better would promote economic growth and likely have a limited impact on inflation, ratings agencies say.

In both states, jobs have recovered past where they were prior to last March when the pandemic hit the U.S.

Fitch analysts discussed the relationship between the soveriegn rating and state and local credits.

The honorees of the past are making a big impact in the present.

Goldman Sachs is lead managet for the issuance, which includes tax-exempt and taxable bonds.

The state's momentum with rating agencies continued when Fitch elevated its special tax obligation bonds to AA-minus.

It could take the nation, heavily influenced by New York and California, 18 months to return to full employment, Fitch Ratings said.