Ohio Receives Positive Rating Outlook from Fitch
This report is a summary of third-party economic research and perspectives to foster communication with business and economic development stakeholders during the COVID-19 crisis.
Key Economic Insights
- Global: IMF member nations approved the largest resource injection in the fund’s history, allocating $650B to assist countries dealing with debt from the global pandemic.
- U.S.: U.S. Job Openings reached a new record in June, with available positions rising to 10.1M. New weekly jobless claims fell for a third straight period to 375,000.
- Ohio: Ohio’s bond rating and outlook was elevated to the highest level in 42 years, citing the state’s sustained trend of balanced finances and growth in reserves.
U.S. job openings reached a new record in June, rising to 10.1M from an upwardly revised 9.5M in May. Economists had projected an increase to 9.27M openings. Total hires rose to 6.7M, while the hires rate increased to 4.6%. Layoffs and discharges were little changed. Labor supply is expected to increase in the coming months as supplemental federal jobless benefits expire and schools reopen. New weekly jobless claims fell for a third straight period. Continuing claims were 2.87M, below the 2.90M expected and a decline from the revised 2.98M from the prior week.
Ohio Employment & Economic Insights
Ohio inched closer to a triple-A rating as Fitch Ratings lifted the outlook on its AA-plus rating to positive. The rating agency cited “Ohio’s sustained trend of balanced finances and growth in reserves that strengthens the state’s financial resilience as it confronts cyclical economic and revenue trends.” The rating action is Fitch’s first change in 11 years and represents the highest rating level for Ohio’s IDR since 1979.
Positive Company-Specific News
- 80 Acres Farms secured $160M in Series B financing to accelerate global farm expansion & product development.Carvana announced a $126M investment in Root Insurance as part of an exclusive partnership to develop integrated auto insurance solutions.
- FedEx is looking to fill more than 1,000 jobs in Cincinnati due to continued increased demand for residential service deliveries.
- Phoenix Metals is constructing a 156K SF building in Middletown, retaining its workforce and hiring 20 additional employees.
- F&P America Manufacturing plans to invest $3M to build a 36K SF addition to its facility in Troy.
- General Mills will invest $28M to expand a cereal production plant in Sharonville, expecting to add 33 new jobs.
- Cardinal Health has partnered with Abbott and Quidel to offer rapid OTC COVID-19 tests. The company also extended its agreement with CVS Health to distribute pharmaceuticals to retail pharmacies and distribution centers through June 2027.
- Kroger is collaborating with Google to make grocery pickup process more efficient, with Cincinnati becoming only the second US market to feature the program involving the two companies.
- The U.S. Postal Service plans to hire 200 new employees throughout the Greater Cincinnati region.
Negative Company-Specific News