Fitch Ratings has affirmed Oregon’s Long-Term Issuer Default Rating (IDR) and General Obligation (GO) bond ratings at ‘AA+’ with a Positive Rating Outlook. This reflects Oregon’s strong revenue control, low liabilities and effective financial management. The state’s economy is diverse and shows strong long-term growth prospects, although it is heavily reliant on personal income tax (PIT). The Positive Rating Outlook is due to increased reserves in the Education Stability Fund (ESF) and Rainy Day Fund (RDF). Oregon’s fiscal 2024–2025 biennium saw record revenues and reserves, with significant PIT and corporate income tax (CIT) growth. The state projects $2.9 billion in designated reserves by the end of the biennium. The governor’s proposed fiscal 2026–2027 budget anticipates a 29% revenue increase, maintaining funding for key programs. Oregon’s labor market recovery lags the national trend, but overall economic performance remains strong.
Mon 14 Apr, 2025