Florida given AAA credit rating as U.S. downgrades to AA+

TALLAHASSEE, Fla. (FLV) – Fitch Ratings reaffirmed Florida’s AAA credit rating this week, prompting Gov. Ron DeSantis to celebrate the state’s superior ranking over the country at large.

The U.S. was recently downgraded from AAA to AA+.

“Today’s announcement reinforces that Florida’s track record of conservative policy, early debt repayment, and strong reserves is the blueprint for states and the federal government to follow,” DeSantis said.

“As excessive spending and irresponsible governance ballooned our nation’s debt to detriment to its credit rating, Florida remains the standard-bearer for smart fiscal policy,” the governor continued.

In their ranking, Fitch noted that Florida’s debt has “steadily declined” and that the Sunshine State can “maintain a high level of fundamental financial flexibility through economic downturns, with broad expenditure and revenue controls buttressed by robust reserves.”

They also said Florida has a “history” of “sound financial management practices, high gap-closing capacity and reserves, and low long-term liability.”

In their report on downgrading the U.S., Fitch said dinging the rank to AA+ reflected “expected fiscal deterioration over the next three years” along with increasing debt.

Fitch also criticized the country’s frequent political standoffs over raising the debt ceiling.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” they noted.

DeSantis has signed multiple tax cut packages for Floridians over the past couple years totaling in the billions of dollars.

The governor touted Florida’s $2.7 billion in tax cuts for Floridians when he signed the state’s latest budget in June

“That’s a record by far,” DeSantis said. “Last year, we did $1.2 billion, which was the record for Florida and so we more than doubled last year’s record.”