The State of Texas has joined the City of San Antonio with a AAA bond rating from all three major ratings agencies, the top rating awarded, 1200 WOAI news reports.
Standard and Poor's raised its rating from AA plus to AA on Friday.
"S&P's decision to raise Texas' credit rating to AAA is no accident, but further proof that the Texas model of conservative fiscal discipline is a key element of our strong economy, Governor Perry said.
Fitch and Moody's had held Texas bonds at AAA for some time.
"I am pleased with the Standard & Poor's ratings upgrade," State Comptroller Susan Combs said. "When I made presentations to the ratings agencies this summer, my message was very clear. Texas is a business friendly state with a strong job market and a diverse mix of industries. These bond ratings reflect Wall Street's confidence i n the Texas economy, the state's revenue growth and disciplined cash management and budgeting."
AAA ratings means the state can borrow money at the lowest possible interest rate. That means more tax money is going for government services and less to pay interest to bankers.
AAA ratings are more important than ever these days for states and municipalities. With so many cities and potentially states seeing downgrades and even bankruptcies, municipal and state bonds issued by AAA jurisdictions will be increasingly popular on the bond markets.