CHARLESTON, W.Va. - Governor Patrick Morrisey today announced that Fitch Ratings has upgraded West Virginia’s lottery and excess lottery revenue bonds from A+ to AA-, with a Stable Outlook.
“This is terrific news for West Virginia and another sign that prudent financial management matters,” Governor Morrisey said. “Strong credit ratings can help lower borrowing costs, protect taxpayer dollars, and give us greater flexibility to invest in our state. When we manage taxpayer money responsibly, we put ourselves in a better position to make life more affordable for everyday West Virginians.”
The upgrade applies to lottery revenue bonds issued by the West Virginia Higher Education Policy Commission and excess lottery revenue bonds issued by the West Virginia Economic Development Authority, Water Development Authority, and School Building Authority.
In its rating action, Fitch cited the strong resilience of the financing structures and ample debt service coverage. Fitch determined that both the lottery and excess lottery revenue structures could withstand significant revenue stress while maintaining robust coverage of their debt obligations.
West Virginia’s overall Issuer Default Rating remains AA with a Stable Outlook.
“Affordability, prudent management, and strong credit ratings all go hand in hand,” Governor Morrisey said. “We’re going to continue managing the state’s finances responsibly so we can keep West Virginia on strong financial footing and deliver better results for our people.”
The upgraded bonds are supported by statutory allocations of net profits from West Virginia’s lottery and excess lottery funds. Fitch reported that lottery revenues have experienced stronger growth in recent years, driven in part by gains in online gaming.