Standard&Poor's Ratings Services assigned its 'AAA' rating and stable outlook to North Carolina's general obligation (GO) refunding bonds series 2016A. At the same time, Standard&Poor's affirmed its 'AAA' rating on the state's GO debt outstanding and its 'AA+' rating on the state's appropriation debt outstanding. The outlook on both ratings is stable. The rating reflects our view of the following credit factors: The state's diverse economic base that is expanding ahead of the nation following a sharp decline in the last recession; A long history of prudent fiscal management--this includes making difficult budget decisions to restore fiscal balance when necessary, as well as managing surpluses when they occur, to retain structural budget balance; A low-to-moderate debt
