WILMINGTON, DE — Governor John Carney announced this Tuesday that Delaware has upheld its AAA/Aaa credit ratings, the highest possible marks from the nation’s major rating services. This top-tier rating bolstered the state’s position in its recent $359 million General Obligation Bonds sale, signaling robust financial health and investor confidence.
These premier ratings are awarded by Fitch, Moody’s, KBRA, and S&P Global Ratings, reflecting Delaware’s strong financial management, prudent debt load, and strategic approach to economic challenges and development. Governor Carney attributed this achievement to decades of disciplined financial stewardship and a consistent focus on economic growth by state leaders.
The ratings underscore Delaware’s capacity to meet its debt obligations, even in challenging economic times, ensuring lower repayment costs for bonds. Secretary of Finance Rick Geisenberger highlighted the competitive nature of the bids received for the bonds, despite the current environment of higher interest rates. He also noted the state’s savings of $6.1 million from refinancing existing debt, showcasing effective financial management strategies.
The rating agencies commended Delaware for its responsible budget and debt management practices. Fitch lauded the state’s proactive surplus operations management, while S&P praised its adherence to debt limits and rapid amortization. Moody’s emphasized the state’s strong fiscal discipline, with all agencies rating Delaware’s outlook as stable, supported by solid reserves and ongoing economic growth.
State Treasurer Colleen Davis pointed to the collaborative efforts of the Delaware Treasury and the Cash Management Policy Board in maintaining high liquidity and reserves. These efforts not only reduce borrowing costs but also support vital state investments in education, public safety, and quality of life enhancements.
The proceeds from the bond sale will be allocated to Delaware’s capital program and the refinancing of previous bonds to achieve debt service savings, with the transaction set to close on May 15, 2024. This financial milestone illustrates Delaware’s enduring commitment to fiscal responsibility and economic resilience.
Rating reports can be found at the Delaware Department of Finance’s website.
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