Find the links below to the recent credit ratings from Moody’s and S&P.
Moody’s Credit Opinion on Arkansas: Click HERE
S&P Ratings Report on Arkansas: Click HERE
S&P and Moody’s affirm state’s credit rating
Reports highlight “exceptionally strong governance” and “favorable population growth trends”
LITTLE ROCK, Arkansas (June 30, 2026) – S&P Global Ratings recently affirmed its AA+ credit rating on the State of Arkansas’ outstanding general obligation bonds along with proposed 2026 water, waste disposal, and pollution abatement facilities general obligation bonds. In addition, Moody’s affirmed its Arkansas Aa1, stable credit profile. Moody’s noted Arkansas “continues to benefit from its exceptionally strong governance practices, very strong reserve levels and low leverage” and called attention to “significant capital investment across several sectors.”
S&P highlighted the state’s budget and revenue practices. “Given the state’s prudent budgeting practices, regular revenue monitoring, and ability to quickly introduce budget modifications if necessary, we expect stable financial performance trends will continue,” S&P stated in the June 26, 2026 report. S&P also noted the rating was the result of “favorable population growth trends and continued private sector investment that have helped aid general economic stability.” The report referenced “many consecutive years of healthy surplus performance results” and “very large rainy-day funds and reserves.”
“The State of Arkansas is in great financial shape: taxes are going down, investment is rising, and we continue to record large surpluses year after year,” said Governor Sarah Huckabee Sanders. “Our strong credit rating doesn’t just affirm our state’s strong fiscal management; it’s also a beacon to investors that Arkansas is a great place to do business and a strong candidate for their capital. I’m grateful to our leadership in the legislature and within state agencies for their hard work to slow the growth of government, deliver savings to the taxpayer, and responsibly steward Arkansas’ finances.”
The State of Arkansas’ record reserve funding includes more than $3 billion across various funds. The state’s fiscal year ends June 30, with another substantial surplus anticipated. The year-end report will be issued July 2.
“Both S&P and Moody’s recognize the responsible manner in which the State of Arkansas structures its finances. Arkansas is in the enviable position of having very low debt and very high capital reserve levels,” said Arkansas Department of Finance and Administration (DFA) Secretary Jim Hudson. “Thanks to Governor Sanders’ leadership, our budget is balanced, taxes are going down, and economic opportunities are increasing. S&P and Moody’s affirm what we already know – Arkansas is doing well.”
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