Delaware Earns Triple-A Bond Rating for 12th Consecutive Year

The country’s three major bond-rating agencies are praising Delaware for its fiscal management practices by awarding the state a triple-A bond rating. Moody’s Investors Service, Standard and Poor’s, and Fitch Ratings all gave Delaware a triple-A bond rating, the highest-quality rating possible. Delaware has maintained its triple-A bond rating since 2000.

In its ratings review, bond rating agencies specifically cited the state’s healthy pension status, as well as its decision to proactively manage its declining revenues. The agencies also praised the Delaware Economic and Financial Advisory Council for the frequency of its revenue forecasts.

The state is proposing issuance of $298.8 million of its general obligation bonds. $259.6 million represents new money for capital projects, primarily school construction projects, while over $39.2 million will refinance existing higher-priced debt.

In addition, the State will issue taxable bonds known as Build America Bonds, taking advantage of the bonding provisions contained in the America Recovery and Reinvestment Act. The Build America Bonds, which earn a 35% subsidy from the federal government, will be sold to institutional buyers. “Build America Bonds are a great benefit to Delaware because of the 35% subsidy from the federal government. They are more cost-effective for the state than our traditional tax-exempt bonds,” says Cook.

Retail bonds will be available from the following brokers until October 19, 2010:

J.P.Morgan (888) 299-7553

Citi (877) 801-4593

BofA Merrill Lynch (800) 937-0424 (Wilmington)
(800) 487-4518 (Rehoboth Beach)
(800) 937-0631 (Dover)

Edward Jones (800) ED-JONES

Fidelity Capital Markets (800) 544-5372
(302) 428-3776 (Wilmington)

Jefferies & Company
(800) 567-8567

Morgan Stanley (877) 937-6739

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