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Under Governor Glenn Youngkin, Virginia continues to lead as a national model of fiscal responsibility and good governance. This week, Moody's Ratings reaffirmed the Commonwealth's Aaa stable credit rating, citing Virginia's healthy balance sheet, strong liquidity, below average liabilities, conservative fiscal management and prudent stewardship of taxpayer dollars in their decision. The rating reflects a broader reality: Governor Youngkin's Compete to Win agenda is working and has delivered a strong balance sheet, attracted more than $100 billion in capital investment to the Commonwealth, returned $8 billion in tax relief to Virginians and is making Virginia an even better place to live, work, and raise a family.
Key Takeaways from Moody's:
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Aaa credit rating affirmed; stable outlook maintained
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Conservative fiscal practices and robust reserves cited as strengths
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Virginia's economy well-positioned to absorb federal restructuring
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Virginia economy is diversified and has a strong defense sector
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District of Columbia under downgrade review; Maryland downgraded to a negative outlook
As Governor Youngkin stated during his budget amendment announcement in March: "Virginia has never been stronger. Strong job growth. Strong startup launches. Strong business investment. Strong population growth. And a strong balance sheet."
Moody's rating is an affirmation of Governor Youngkin's track record of making prudent budget decisions without resorting to drastic tax hikes or spending cuts.
Other neighboring states have taken a different approach, and they have seen different ratings and results. For example, Maryland, which has a Aaa negative rating, recently enacted a combined $3 billion in tax hikes and budget cuts. By contrast, Virginia has prioritized structural stability. In a regional and national landscape increasingly marked by budget stress, Virginia stands out for its discipline, resiliency, and long-term strategy. The Commonwealth remains financially sound and well-positioned for continued growth.
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