S&P raises West Virginia’s credit rating with Republican leadership

West Virginia’s Positive Shift: A Model for Neighboring States?

West Virginia, often overlooked and underappreciated, might be gaining some well-deserved recognition. This week, S&P upgraded the state’s outlook from stable to positive, while affirming its general obligation rating at AA-.

The rating agency noted that this upgrade reflects West Virginia’s substantial budget surpluses, robust reserves, and effective cost management. It seems there’s a message here for voters in Virginia and New Jersey who are preparing to elect new governors. West Virginia, once seen as lagging behind, is now thriving under solid Republican leadership.

A key figure in this turnaround is former Governor and current Senator Jim Justice. He shared with Fox News Digital, “We aimed to cut taxes but realized we had to fund those cuts. We wanted to enhance our roads without incurring debt. It’s not straightforward to balance a state budget, but prioritizing the people’s needs leads to positive outcomes. I suggest other states adopt the methods we utilized in West Virginia.”

Justice isn’t the only official contributing to West Virginia’s recent growth. Freshman Republican Representative Riley Moore commented on his time as state treasurer, highlighting achievements like slowing budget growth, increasing reserves by over $800 million, implementing the largest income tax cut, attracting record investment, and generating job opportunities. He expressed satisfaction that credit agencies recognize the state’s improved outlook.

In my conversations with New Jersey voters, energy costs and taxes seem to be the dominant concerns in their gubernatorial race. West Virginia sets an intriguing example regarding both issues. Republican candidate Jack Ciattarelli, similar to Justice, has a background in business and is dedicated to boosting energy production while seeking significant tax cuts. Meanwhile, his opponent, Mikie Sherrill, appears to be promising more of the same from Democratic perspectives.

In Virginia, the Democratic candidate Abigail Spanberger is expected to reverse many of the successful policies currently in place, as Republican Winsome Earle Sears works to succeed Governor Glenn Youngkin, who helped earn Virginia recognition as a top business-friendly state.

Historically, West Virginia’s attitude toward new arrivals from Virginia—attracted by lower living costs—was welcoming but with the caveat of leaving political preferences behind. However, with Republican leadership, Virginia seems to be forging its own path now.

Over recent decades, states like West Virginia, Ohio, and Indiana have suffered significantly from geopolitical economic policies, leading to factory closures and economic decline.

The Trump administration is reportedly facilitating trillions in new investments in the U.S., and states that adopt business-friendly approaches, such as West Virginia, are likely to witness substantial economic growth. This makes the upcoming gubernatorial elections in Virginia and New Jersey particularly crucial. Will these states implement sound policies to harness the investments from the Trump administration, or will they choose to clash with the federal government like California and New York?

Current Republican Governor Patrick Morrissey expressed pride in overseeing S&P’s first positive credit rating action for West Virginia in over ten years.