The upgrade is driven by realized and expected improvement in the state's financial metrics, the rating agency said.
"We're not going to be having huge reinvestment months over the next few months, not until the beginning of the year. So we need this flow [of deals] to keep up with demand, and we expect that to continue," said Jennifer Johnston, director of municipal bonds research at Franklin Templeton.
The approval of $650 million of revenue bonds comes in the wake of a recently filed petition seeking to subject the project to voter approval or delay.
With the advance refunding of tax-exempt munis still off the table, issuers are using existing market conditions to shed Build America Bonds and realize debt service savings through tender offers.
The spending cuts and reforms to Medicaid and SNAP in the One Big Beautiful Bill will be phased in through 2028, but most states will start preparing early next year.
"I would say don't be afraid to pick up the phone and talk to investors directly," Nuveen's Molly Shellhorn said.
