Praising Mediocrity

The Governor’s email, picked up by most media outlets boasts that “Fitch Ratings, Moody’s Investor Services and Standard & Poor’s all affirmed the Commonwealth’s ‘AA’ ratings with a stable outlook.”

Great news, right?  Well, it’s certainly not bad news.  But, deserving of the Deval fan club swoon?  

Good news compared to what? Consider this, from Fitch: When the rating agencies are rating General Obligation bonds of the States, other than the junk bonds of California (BBB) and the BB and BBB of Michigan, all the states rate at AA or AAA.  At MINIMUM, a government ought to deliver AA rated debt.

So, way to go Govenor! the State’s doing better than California and Michigan.

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