News Summary
Indiana has secured a AAA credit rating, the highest possible, from S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings. This achievement reflects the state’s strong fiscal management and stability, maintained since 2010. Governor Mike Braun emphasized the significance of this rating in fostering economic growth, despite the challenges posed by potential revenue losses due to federal policies. Indiana’s disciplined financial practices allow the state to borrow at lower interest rates, benefiting taxpayers and enhancing investment in vital services.
Indiana Maintains AAA Credit Rating from All Three Major Agencies
Indianapolis, Indiana — Indiana has secured its AAA credit rating, the highest designation possible, from the three leading credit-rating agencies: S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings. This achievement underscores the state’s strong fiscal health and disciplined financial management practices.
Official Announcement and Significance
The Indiana governor’s administration announced the credit rating update on Tuesday. Governor Mike Braun highlighted that this top-tier rating reflects the state’s responsible stewardship of its finances and a continued commitment to fostering economic growth for residents. The AAA rating from all three agencies is rare; only 14 states in the nation hold such a distinction. Indiana has maintained this distinction uninterrupted since 2010, demonstrating stability over more than a decade.
Recent Ratings Confirmation
The most recent evaluations occurred in September 2024, April 2025, and June 2025, confirming Indiana’s consistent fiscal position. Credit agencies commended Indiana for several key fiscal practices, including active management of its budget, low levels of debt, robust fiscal policies, and well-maintained budgetary reserves. This disciplined approach has been a central factor in earning and preserving the AAA ratings.
Impact of the AAA Rating
Achieving and maintaining a AAA rating allows Indiana to borrow funds at lower interest rates. This financial advantage helps reduce costs for taxpayers and enhances the state’s capacity to invest in essential areas such as infrastructure, education, and public services. A strong credit profile also plays a vital role in making Indiana more attractive to businesses looking to expand or relocate, thereby supporting economic development efforts.
State Budget and Economic Context
Despite the positive credit standing, Indiana faces economic challenges. Recent revenue forecasts suggest that the state could experience a loss of $2.4 billion in tax receipts over the next two years. The decline is influenced by federal tariff policies and broader economic uncertainties, which can impact overall revenue collections.
Measures to Address Fiscal Challenges
To meet rising expenses, notably in Medicaid programs, Indiana’s General Assembly enacted a significant tax adjustment. Specifically, the cigarette tax was increased by 200%, rising from $1 to $3 per pack. This measure aims to generate additional revenue to support Medicaid costs and other public services amid financial pressures.
State Financial Management and Resources
Indiana’s Finance Authority provides further information regarding the state’s credit ratings and financial policies through its official webpage, offering transparency and insights into the state’s fiscal health and management strategies.
In summary, Indiana’s maintained AAA credit rating from all three major agencies underscores its stable fiscal position, responsible financial governance, and ongoing efforts to support economic growth despite economic headwinds. The rating plays a crucial role in enabling fiscal flexibility and investment, positioning the state favorably for future development.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Indiana Capital Chronicle
- Building Indiana
- NWI Times
- WIBQ AM
- Newsweek
- Wikipedia: Credit Rating
- Google Search: Indiana Credit Rating
- Google Scholar: Indiana Credit Rating
- Encyclopedia Britannica: Credit Rating
- Google News: Indiana Credit Rating
Author: STAFF HERE INDIANAPOLIS WRITER
INDIANAPOLIS STAFF WRITER The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
