Fitch Rounds out Big 3 in Upgrading South Dakota Bond Rating

PIERRE, S.D. (AP) — South Dakota has received the highest marks it can from the big three bond rating agencies with an upgrade from Fitch Ratings.

Fitch cited the state's "consistently conservative fiscal operations" Wednesday in upgrading South Dakota's issuer default rating to "AAA" and state-linked debt to "AA+."

Collecting top ratings has been a priority for Gov. Dennis Daugaard, and Fitch's move comes after similar bumps from Moody's and Standard & Poor's.

Daugaard says these types of upgrades demonstrate South Dakota's exceptional credit worthiness to financial markets.

Upgrades are analogous to an improving credit score, typically allowing bonds to carry a lower interest rate.

Fitch also cited South Dakota's tax structure, since revenues have exhibited less sensitivity to national economic cycles than other states. The agency credited the state's healthy pension system and low debt.

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