Study shows Tenn.'s debt ratio lowest in nation

A recent study shows Tennessee's debt ratio is the lowest in the nation.

The state comptroller's office said in a release this week that the study was conducted by New York-based Fitch Ratings, one of the country's top bond rating agencies.

The agency analyzed debt ratios in all 50 states and concluded that Tennessee's ratio is the lowest.

It uses a metric that is calculated by combining the state's net tax-supported debt and unfunded pension liabilities then measuring them against the state's personal income level.

Tennessee's ratio of debt and pension liabilities to personal income was 1.8 percent.

According to the study, no other state had a ratio below 2.2 percent and four states had ratios above 20 percent.

Fitch uses the debt ratios when evaluating states' credit ratings.

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