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Moody's Flags Washington Credit Negative, Raises Bond Costs

5/6/2026

Summary

Story summary

Moody’s shifted Washington’s credit outlook to negative on April 23, 2026, after which Fitch issued the downgrade on April 24.
Reserves are below 6% of revenue.
Treasurer Mike Pellicciotti called the downgrade a “check engine light” and urged a FY2028 balanced budget.
The downgrade could add 0.1% interest, costing $60 per million annually and $30 million for school bonds.
Moody’s expects reserves rebuilt before 2029 (mid-2028) and a $60 million yearly loss in interest earnings.

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Story summary

Moody’s shifted Washington’s credit outlook to negative on April 23, 2026, after which Fitch issued the downgrade on April 24.
Reserves are below 6% of revenue.
Treasurer Mike Pellicciotti called the downgrade a “check engine light” and urged a FY2028 balanced budget.
The downgrade could add 0.1% interest, costing $60 per million annually and $30 million for school bonds.
Moody’s expects reserves rebuilt before 2029 (mid-2028) and a $60 million yearly loss in interest earnings.