State Retains Strong Bond Rating, Despite Budget Issues
Charleston Gazette - West Virginia has retained a strong AA+ bond rating, despite financial issues that could require the state to take another $85 million out of its Rainy Day Funds this year, according to a bond rating report issued by Fitch Ratings. Read
Fitch cited West Virginia's sizable reserve funds as a financial strength, even though $100 million was taken out of the Rainy Day Funds this budget year to balance the 2014-15 general revenue budget.
"The governor is expected to propose a further, $85 million use of the RDF (Rainy Day Fund) in fiscal 2016, lowering reserves to a still solid 18 percent of general fund revenues. Fitch expects the state to maintain significant reserves given the economic and financial reliance on natural resource development," the report states.
As of Dec. 31, the two reserve funds contained more than $859 million, according to the state Budget Office.