Moody’s Investors Service Upgrades Kansas Outlook to Positive

Moody’s Investors Service, which provides international financial research and well-known credit ratings, announced that it has upgraded the credit outlook for the State of Kansas, underscoring Governor Kelly’s steady fiscal leadership.

“Moody’s upgraded positive outlook is a reflection of the hard work done over the last eight years to undo the damage created by the previous administration,” Governor Laura Kelly said. “Closing the Bank of KDOT, building a $2 billion Rainy Day Fund, using our surpluses for one-time projects, and paying our bills on time has restored their faith in our ability to responsibly manage our finances. We must remain fiscally disciplined if we are to continue on this strong economic path.”

Yesterday, Moody’s upgraded Kansas’ credit outlook from stable to positive. In its announcement, Moody’s attributed this upgrade to an improved governance structure, strong rainy day reserves, a reduction in the state’s debt obligations, and implementing tax cuts that are responsible in nature.

“Under Governor Kelly’s leadership, we have been laser focused on re-establishing common sense and principled budgeting practices in Kansas, and those efforts are being recognized nationally,” Adam Proffitt, Director of the Budget for the State of Kansas, said. “By taking a measured, forward-looking approach to budgeting, the State’s fiscal house is back in order, and it will remain on solid footing into the future.”

Prior to Governor Kelly’s administration, the State of Kansas’ Moody credit outlook was dropped from stable to negative in 2016, citing inabilities to restore structural balance to the budget due to the Brownback-Colyer Tax Experiment.

Moody's Investor Service's announcement can be found here.