LANSING, Mich. (Michigan News Source) – The State Budget Office of Michigan is calling attention to the state’s “stable outlook” prospect recently reaffirmed by all three credit rating agencies, which gave Michigan ratings of Aa1 (Moody’s), AA+ (Fitch), and AA (S&P).

According to data from the California State Treasurer’s Public Finance Division, Michigan’s S&P rating of AA for general obligation (GO) bonds (or issuer credit rating for states that do not have GO debt outstanding) puts it alongside 39 other states with ratings AA or above. Only 11 states fall below this threshold, with the lowest ratings in New Jersey and Illinois at A-. 27 states have S&P ratings higher than Michigan’s at AA+ or AAA.

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“You don’t have to take my word for it when it comes to Michigan’s strong financial position, competitive economy, and responsible budgeting­—just look at our credit ratings!” Governor Whitmer wrote on Twitter. “With low unemployment, strong fiscal fundamentals, and a diversifying economy, Michigan is on the move!”

Although each rating agency uses a slightly different scale, each agency assigns ratings with letter grades where AAA is the highest and C or D is the lowest. Anything below BB for S&P and Fitch or Ba for Moody’s is considered a “junk bond” with substantial credit risk, according to Investor.gov. Agencies may also add a + or – symbol (or, in Moody’s case, a number from 1-3) to indicate ratings between letters.

Last year, for the first time in nearly a decade, Fitch upgraded Michigan’s long-term issuer default rating (IDR) from AA to AA+. This change came with upgrades to specific obligations, including general obligation bonds, State Building Authority revenue bonds, Michigan Strategic Fund bonds, and School Bond Qualification and Loan Program. Fitch reported that the new rating reflected the state’s higher level of fiscal resilience and diversified economy compared to the previous decade, coupled with fiscally responsible budgeting and an effort to address debt.

“Great credit ratings with a consistently stable outlook have a tangible impact on the everyday lives of Michiganders,” said Treasurer Rachel Eubanks. “A great credit rating is also a testament by Wall Street to our noted track record of smart financial decisions and a thriving economy.”