CHARLESTON, W.Va. — A global credit rating agency says West Virginia’s lottery and excess lottery revenue bonds are in good shape.
Gov. Patrick Morrisey announced Wednesday that Fitch Ratings boosted its evaluation of West Virginia’s bonds from A+ up to AA- with a “Stable Outlook.” The assessment applies to the West Virginia Higher Education Policy Commission (HEPC)’s lottery revenue bonds it issues, along with excess lottery revenue bonds from the West Virginia Economic Development Authority (WVEDA), Water Development Authority (WVWDA), and School Building Authority (SBA WV).
“This is terrific news for West Virginia and another sign that prudent financial management matters,” Morrisey said. “Strong credit ratings can help lower borrowing costs, protect taxpayer dollars, and give us greater flexibility to invest in our state. When we manage taxpayer money responsibly, we put ourselves in a better position to make life more affordable for everyday West Virginians.”
According to the governor’s release, Fitch stated that West Virginia’s financing structures showed “strong resilience” and possessed “ample debt service coverage.” In its evaluation, Fitch found that the lottery and excess lottery revenue structures are able to fulfill their debt obligations even while placed under revenue stress.
As for the state’s overall “Issuer Default Rating,” it stays at AA with a “Stable Outlook.” Fitch said that the upgraded assessment of West Virginia’s bonds were because of lottery revenues increasing in recent years, thanks in part by more online gaming profits.
“Affordability, prudent management, and strong credit ratings all go hand in hand,” Morrisey said. “We’re going to continue managing the state’s finances responsibly so we can keep West Virginia on strong financial footing and deliver better results for our people.”