Standard & Poor’s recently released a report assigning the Wisconsin Retirement System a AAA issuer credit rating with a “Stable” outlook. The report concluded a thorough review of the credit worthiness and stability of the WRS.
This rating is an acknowledgment of the robust processes, written procedures, and risk management discipline that the State of Wisconsin Investment Board has built over several decades, as well as the strong funding status of the WRS. As mentioned in the report, S&P rated the WRS one notch above the AA+ rating currently assigned to the State of Wisconsin.
In addition to being a strong signal to the markets of the financial and operational strength of the WRS, the rating makes the WRS a more desirable counterparty to market participants and opens up new trading relationships.
For 60 years, S&P has provided credit ratings, analysis, and market insights for a diverse range of pension funds, governmental authorities, and U.S. states. Every state and many municipalities have a credit rating. A credit rating, in the simplest of terms, is an opinion about the ability of an entity, like the WRS, to meet its financial obligations on time and in full.