Credit rating for Idaho reaffirmed by Fitch

Idaho’s credit rating remains in good standing as its issuer cited the state’s spending and reserves.

Fitch Ratings reaffirmed the state’s AAA Issuer Default Rating last week, noting that Idaho had “broad powers over spending and revenues, strong reserve levels, low long-term liability burden and expected long-term economic growth,” a statement from the state treasurer’s office read.

“Achieving a triple A credit rating once again is a testament to Idaho’s strong financial management and unwavering commitment to fiscal responsibility,” said Idaho State Treasurer Julie Ellsworth.

The rating, the treasurer’s office stated, reflects the states conservative fiscal practices and its consistent economic growth, as well as its ability to pivot as the economy changes where necessary.

“Fitch believes the state is well positioned to absorb multiple rounds of recent tax cuts and dedicated spending allocations from the general fund, given Idaho’s prudently managed budget with significant one-time spending that rolls off to create fiscal capacity,” the issuer stated in its report.

The issuer pointed out Idaho’s growth as being a strong factor in the reaffirmation of its AAA status, stating that whereas the national average for growth is about 10.2%, Idaho’s growth averaged 27.7% from 2010 to 2024.

“The state’s economy has been diversifying beyond traditional strengths in agriculture and mining, with growth in transportation and warehousing, professional and business services, retail, construction and health care,” the Fitch report stated. “Personal income gains have accelerated with population growth and diversification, although state wealth remains below average as measured by per capita personal income.”

Some factors could negatively affect the rating, the issuer stated, which were “changes to budget management that materially weaken financial resilience, such as a failure to adjust to the effects of recent tax policy changes that leads to structural budgetary imbalances, [and an] unexpected reversal of strong population, economic and revenue growth.”