Top credit rating agency puts Washington on notice

Washington got a clear warning this week that its reliance on reserves and one-time maneuvers to balance the budget endangers the state’s strong credit rating, which could worsen financial challenges.

Moody’s, one of the big three credit rating agencies, on Wednesday revised its outlook for Washington finances from stable to negative, signaling deep concern with the state’s propensity to enact budgets that spend more money than it takes in, and uses reserves and other measures to make ends meet.

It did affirm Washington’s strong triple A rating on bonds, acknowledging the state’s economy is fundamentally strong. But if the current budgeting approach continues in future years, Washington will be less able to “absorb unexpected revenue or expenditure shocks” that might occur, the ratings agency noted.

Democratic state Treasurer Mike Pellicciotti has been delivering a similar message to state lawmakers and Democratic Gov. Bob Ferguson the past two legislative sessions.

https://washingtonstatestandard.com/2026/04/24/top-credit-rating-agency-puts-washington-on-notice/