OREANDA-NEWS. In 2015, U.S. public finance upgrades exceeded downgrades for only the second time since the beginning of the financial crisis, according to a new Fitch Ratings report.

'Stable economic growth spurred revenue growth and stability in the U.S. As a result, we saw a general trend towards stability as both upgrades and downgrades decreased year-over-year,' said Jessalynn Moro, Managing Director of U.S. Public Finance Group. 'That said Negative Rating Watches were up as of year-end, increasing to 16 from nine the year prior but still remain a small portion of the portfolio.'

Upgrades totaled 148 in 2015, down from 183 in 2014, representing 4.4% of all rating actions with a par value of $140.1 billion. There were 65 downgrades in 2015 versus 142 downgrades in 2014, representing 1.9% of all rating actions with a par value of $133.9 billion.

Despite downgrades decreasing 54%, notable credits were affected including Puerto Rico, Illinois and Chicago area credits.

The largest downgrade by par amount was the approximately $26.8 billion of Illinois general obligation (GO) bonds that were downgraded to 'BBB+' with a Stable Rating Outlook from 'A-' with a Negative Rating Outlook.

The upgrade of the state of California's GO bonds was the largest upgrade by par amount effecting approximately a $76.4 billion outstanding par amount. The upgrade was to 'A+' with a Stable Rating Outlook from 'A' with a Stable Rating Outlook.

In the fourth quarter of 2015 (4Q15) - for the seventh consecutive quarter - rating upgrades outnumbered downgrades. Downgrades were at its lowest since 1Q08, with nearly all related to the downgrade of Illinois and its associated debt.