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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