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Treasurer Todd Russ, along with Governor Kevin Stitt, Pro Tempore Lonnie Paxton and Speaker Kyle Hilbert, today celebrated Oklahoma’s strong financial standing after S&P Global Ratings upgraded the state’s credit rating. S&P Global Ratings raised Oklahoma’s issuer credit rating to ‘AA+’ from ‘AA,’ marking the state’s highest rating in decades. Additionally, the agency upgraded its rating to ‘AA’ from ‘AA-’ on appropriation-backed debt issued by the Oklahoma Capitol Improvement Authority (OCIA) and the Oklahoma Development Finance Authority (ODFA). S&P also assigned an ‘AA’ rating to OCIA’s upcoming $256 million bond issue for the Oklahoma Department of Transportation (ODOT) that is expected to price mid-April.

S&P revised the outlook on Oklahoma’s rating to Positive from Stable in July 2023. The latest upgrade reflects the state’s commitment to responsible financial management, including consistently positive financial results, a dedication to funding pension liabilities, and maintaining high reserve balances to cushion against economic uncertainty. Oklahoma's credit rating was 'AA+' in 2016 before experiencing a downgrade, but through years of disciplined financial management and economic growth, the state has regained its strong standing. This return to ‘AA+’ reflects the commitment to responsible budgeting, maintaining healthy reserves, and fostering economic growth—ensuring long-term stability for taxpayers and businesses alike.

Oklahoma’s latest gross receipts report highlights a significant improvement in revenue collections for December 2024 compared to the previous month. While year-over-year numbers are slightly down, the month-over-month growth of 17 percent reflects positive economic momentum heading into the new year.

Key highlights from December’s report:

• Income tax collections surged by 48.1 percent, marking a strong rebound in personal and corporate tax contributions.
• Sales and use tax revenue increased by 0.9 percent, indicating steady consumer activity during the holiday season.
• Gross production tax revenue climbed by 18.8 percent, signaling a temporary recovery in the oil and gas sector.
• Motor vehicle tax revenue rose by 20.5 percent, demonstrating strong demand in the auto market.

Treasurer Todd Russ commented on the report, stating, “While the state’s revenue trends may seem wobbly, this is typical for the current economic conditions caused by Fed adjustments.”

Recent Federal Reserve policies, including interest rate adjustments to combat inflation, have influenced consumer spending, investment activity, and business growth across the country. Higher borrowing costs have affected markets, but Oklahoma's December tax collections suggest that parts of the economy remain resilient. The state’s ability to sustain revenue growth despite these financial conditions reflects its diversified economy and steady employment levels.

Looking ahead, the Treasurer’s office will continue monitoring economic trends for stability and fiscal responsibility as Oklahoma navigates shifting economic conditions.

Read the full report.

State Treasurer Todd Russ alongside a delegation of Oklahoma leaders, recently traveled to New York City to meet with the nation’s leading credit rating agencies—S&P Global Ratings and Fitch Ratings. These strategic meetings highlighted Oklahoma’s improving economic outlook and the state’s efforts to strengthen its bond ratings.

“Oklahoma is thriving, and we are telling our story on a national stage,” said Treasurer Russ. “Our conservative fiscal policies, historic reserves, and robust economic diversification are being recognized. Meetings like these are critical in demonstrating our financial progress and ensuring the best possible outcomes for Oklahoma taxpayers.”

This marks Treasurer Russ’ third coordinated outreach with the leading credit rating agencies, building on previous efforts. By fostering ongoing dialogue, state leaders continue to highlight Oklahoma’s commitment to fiscal discipline and economic innovation. In 2024, Moody’s upgraded Oklahoma’s credit rating to Aa1, the second-highest possible rating, citing strong reserves, low debt, and prudent fiscal management. Earlier, S&P Global and Fitch Ratings both revised the state’s outlook to positive, emphasizing economic stability and resilience.

"Oklahoma has one of the strongest economies in the nation, as is reflected in our high credit ratings," said Lt. Governor Matt Pinnell. "Our state balances having both minimal debt and strong reserves with the lowest costs of living and doing business, making us the most pro-business state in the country. With our strong financial standings, Oklahoma is set up for long-term financial success to impact generations to come."

The trip also allowed state leaders to provide updates on key financial strategies, including Oklahoma’s proactive approach to pension funding, debt reduction, and leveraging economic diversification to counter volatility in energy markets.

“We were able to show that Oklahoma’s economy has done well, and our fiscal house is in order, which will hopefully lead to increasing our bond ratings,” said Pro Tem-Elect Lonnie Paxton, R-Tuttle. “Historically, we have been successful in making the case for the state by passing good, conservative and fiscally responsible legislation that has put Oklahoma on the right trajectory, leading to increased ratings by bond agencies. I thank the efforts and work put in ahead of our meetings by our teams and the delegation in attendance.”

“Oklahoma’s robust economy, unprecedented savings and track record of conservative fiscal policies are some of our best assets, and I took pride in bragging about our state,” said Senate Appropriations Chairman Chuck Hall, R-Perry. “I’m optimistic that these meetings will result in improved state bond ratings, enabling us to make the most of taxpayers’ dollars while ensuring Oklahoma’s financial stability for years to come.”

The Oklahoma delegation included Lieutenant Governor Matt Pinnell, President Pro Tempore Elect Lonnie Paxton and Senator Chuck Hall, and the state’s bond oversight team, who worked to ensure analysts had a full understanding of Oklahoma’s economic trajectory.

“These agencies have acknowledged our strong fiscal practices,” said Treasurer Russ. “This visit is another step toward ensuring Oklahoma remains financially competitive and continues to lead the nation in economic growth.”

As the state anticipates further improvements in its credit ratings, leaders remain committed to a disciplined approach to governance, ensuring long-term fiscal health for future generations.