(The Center Square) – Iowa ranks eighth best of all U.S. states for its creditworthiness, according to a new report by Barron's, a weekly magazine and website published by Dow Jones & Co.
Asset manager Eaton Vance provided the rankings to Barron's based on a number of factors, including debt and unfunded liabilities as a percentage of gross domestic product (GDP); each state's jobless rate; amount in rainy day funds as a percentage of overall state revenue; and Moody's and S&P's credit ratings, among others.
"The ranking is based on crunching essential financial and economic data from the past fiscal year, ended June 2019, including debt levels and pension liabilities," Moody's Leslie P. Norton writes.
While Iowa placed eighth overall, it ranked third for its debt and unfunded liabilities as a percentage of GDP at 2.0 percent. The lower the number in this category, the better the ranking.
Iowa ranked 16th for its unemployment rate of 8.0 percent. It ranked 17th for having 10.1 percent of its annual revenue in a rainy day fund account. And it ranked 48th, ahead of only Indiana and Illinois, for its credit ratings.
Idaho finished first overall, followed by Wyoming and South Dakota.
Illinois finished last, followed by New Jersey and Kentucky.