Moody’s, a national company that issues credit ratings on bonds, has given bonds from the State of Iowa its highest rating.
It’s sort of like credit ratings for individuals, as investors check bond ratings to determine whether state-issued bonds are a safe bet. Moody’s Aaa (referred to as triple A) rating means the bonds are considered the highest quality and the lowest credit risk.
State Treasurer Michael Fitzgerald says retention of the top rating from Moody’s is “a testament to the State of Iowa’s financial wellness.” According to Fitzgerald, Moody’s cited the state’s cash reserves and its low debt and pension liabilities in issuing the Aaa rating.
In 2020, Iowa was one of only a dozen states that had Triple A bond ratings from Moody’s, as well as two other national credit rating agencies.