Texas Maintains AAA Credit Rating from Major Agencies

September 18, 2025

Texas Maintains AAA Credit Rating from Major Agencies

(AUSTIN) - Acting Texas Comptroller Kelly Hancock today announced that Texas has once again earned the highest possible credit rating (AAA/Aaa) from the major municipal credit rating agencies: S&P Global Ratings, Fitch Ratings, Moody's Investors Service and KBRA.

The agencies cite Texas' diversified economy, steady population growth, strong fiscal reserves and disciplined financial practices in reaffirming the state's credit standing. All assign a stable outlook for the state going forward.

"Texans expect their tax dollars will be handled wisely," Hancock said. "Confirmation of our AAA rating reflects sound fiscal management and the strength of our state's economy. Importantly, it means low borrowing costs for taxpayers and real stability as we continue to invest in government's core functions, from education to infrastructure and public safety."

Credit ratings serve as an independent assessment of the state's financial condition. The AAA designation is the highest rating available and indicates to investors that Texas bonds are considered secure. This standing allows the state to finance projects at the lowest possible interest rates, reducing overall borrowing costs.

Texas' current position is supported by record reserves in the Economic Stabilization Fund, a broad tax base and consistent adherence to balanced budget requirements. Analysts also noted the state's ongoing population and employment growth as factors that contribute to long-term stability.

"Texas is the eighth-largest economy in the world, and these ratings confirm what families and businesses already know: our state is strong, resilient and built for the future," Hancock said. "The Comptroller's office is committed to keeping our finances on firm footing so we can continue delivering conservative, responsible government that works for every Texan."