BATON ROUGE — Louisiana State Treasurer John Fleming said the state’s credit rating has been raised from AA- to AA because of improved finances and changes in how the state manages money.

Fleming said the upgrade is an important milestone for Louisiana and shows progress in addressing budget challenges while keeping strong financial reserves and flexibility for the future.

Fleming said Fitch’s Ratings' decision reflects the state’s 2024 revenue policy changes, which reduced a projected budget gap, along with continued solid budget performance and strong operating reserves.

“An improved bond rating is more than a number on a financial report,” Fleming said. “It sends a positive signal about Louisiana’s creditworthiness and our ability to meet our financial obligations. Our responsibility now is to protect that progress, manage taxpayer dollars prudently and ensure that government lives within its means.”

Fleming said a stronger credit rating could help Louisiana borrow money at lower costs, but any savings will depend on market conditions and how the bonds are set up.

He also said Louisiana has a low long-term debt compared to its resources and is able to manage spending, but warned that state leaders still need to watch for slow economic growth, possible changes in federal policy, spending pressures and changes to the state’s revenue structure.

Fleming said Fitch upgraded the state’s general obligation bonds and issuer default rating from AA- to AA and certain other bonds from A+ to AA-. He said the state was also designated as a Stable Outlook, meaning Fitch expects Louisiana’s credit position to stay steady.

Fleming said the upgrade highlights the need for Louisiana to keep strong reserves, control long-term obligations and follow policies that support steady economic growth.

“This news means the world’s leading credit ratings agencies who evaluate the financial strength and creditworthiness of state governments believe the Louisiana Legislature’s budget policy is on the right track,” said House Speaker Phillip DeVillier.

“According to Fitch, this upgrade reflects the state’s successful implementation of 2024 revenue policy changes, and the agency praised Louisiana’s continued solid budgetary performance” said Senate President Cameron Henry. “We are not done yet, but we are making the changes necessary to secure our state’s fiscal future.”