Moody's affirms Guam's credit rating as stable

Moody's Ratings, formerly Moody's Investors Service, has affirmed that the Government of Guam's creditworthiness "remains stable," according to the governor's office, which said the guidance was "not completely unexpected."

The governor's office said Moody's, a leading provider of research on government and corporate bonds, "is telling Wall Street buyers that, under the Leon Guerrero-Tenorio Administration, Guam's Baa3 investment-grade rating remains stable."

Gov. Lou Leon Guerrero credited her administration's work to maintain balance between tax collection and spending.

"It is not uncommon for Moody's or other ratings agencies to recognize such fiscal discipline with a rating that signals stability and low risk to investors," she said.

Guam's rating was determined based on several factors. The administration highlighted that "Guam scored Aa" in the area of financial performance.

"The elimination of the General Fund deficit and accumulation of reserves, particularly the Rainy Day Fund, were cited by Moody's as significant contributors to Guam's improved financial position," the governor's office said.

The administration credited its fiscal team's work to maintain discipline and a financial system that "prioritizes the needs of the island and its people," noting that "fiscal responsibility has bolstered liquidity, a credit strength."

Lt. Gov. Josh Tenorio recalled the "deficit" inherited in 2019 when the administration first took office, saying "the Guam story is one of recovery and stability."

"Moving forward, it is this financial foundation that will enable the progress of the past seven years to propel us into the future in healthcare, education, housing, and technology," Tenorio added.

The governor's office said the "stable outlook" from Moody's is a positive signal to the federal government — that "as a partner, Guam is capable of financial stewardship that will maximize the return on federal spending, including in the areas of long-term strategic planning, cash management, and transparent resource allocation and utilization."