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NEWS RELEASE
Posted: Jan. 5, 2003
MINNER:
STATE KEEPS HIGH BOND RATING
Governor Ruth Ann Minner announced the reaffirmation of the state’s
AAA bond ratings – the highest possible rating – from Standard and
Poor’s, Moody’s Investors Service and Fitch IBCA on Friday.
“Times
have been tough but these ratings show the respect Wall Street has
for Delaware’s sound fiscal practices over the last few years,” Gov.
Minner said. “These top ratings will save the state millions of
dollars because they mean we will get low-interest rates when we
sell bonds to finance capital projects like building schools,
prisons and courthouses.”
The
strong bond ratings explicitly recognized steps the state has taken
to deal with declining revenues. Delaware is one of the only states
in the nation that, in the last two years, has avoided raising
taxes, drastically slashing services, laying off employees or
raiding its emergency reserve fund.
“Reflected [in the rating] are strong financial management and
conservative debt and budgeting practices, reflected in the state’s
spending reductions and revenue enhancements, which were necessary
to offset downward revision in revenues for [fiscal years] 2003 and
2004,” the rating commentary from Standard and Poor’s said.
The
ratings were given in anticipation of the state’s sale of General
Obligation Bonds. The state will sell $133 million in new and
refinanced bonds on Jan. 8.
Bond rating agencies are
independent corporations that provide assessments of a state’s
fiscal stability for potential investors.
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