Share 
Fitch Ratings has upgraded West Virginia’s lottery and excess lottery revenue bonds from A+ to AA- with a Stable Outlook, according to an announcement from Gov. Patrick Morrisey on Sept. 16.
The state said the higher rating applies to lottery revenue bonds issued by the West Virginia Higher Education Policy Commission, as well as excess lottery revenue bonds issued by the West Virginia Economic Development Authority, Water Development Authority, and School Building Authority. West Virginia’s overall Issuer Default Rating was unchanged at AA with a Stable Outlook.
Fitch pointed to bond resilience and debt coverage
According to the governor’s office, Fitch said the financing structures backing the bonds showed strong resilience and ample debt service coverage. The ratings agency also determined the structures could withstand significant revenue stress while still maintaining coverage of debt obligations.
The upgraded bonds are supported by statutory allocations of net profits from West Virginia’s lottery and excess lottery funds.
Morrisey called the move “terrific news for West Virginia” and said strong credit ratings can help lower borrowing costs, protect taxpayer dollars, and give the state more flexibility to invest.
Online gaming was cited as part of recent revenue growth
One notable gaming-related detail in the announcement was Fitch’s view that lottery revenues have shown stronger growth in recent years, driven in part by gains in online gaming.
The release did not provide revenue figures, bond amounts, or a breakdown of which online gaming products contributed to that growth. It also did not announce any direct change for West Virginia players.
Still, the upgrade is a positive financial signal for a bond structure backed by state lottery-related revenue. For West Virginia’s gaming market, it indicates that Fitch sees the revenue base supporting those obligations as stronger than before.
What to watch next
The state’s announcement did not identify a next hearing, bond issuance, or follow-up rating date. Future disclosures from Fitch or West Virginia agencies may provide more detail on bond size, underlying revenue trends, and how online gaming continues to factor into lottery-related collections.
—
Source: As reported by governor.wv.gov.
