Delaware Receives AAA Bond Ratings
The nation’s three top rating services have all given Delaware the highest possible rating – AAA. State Treasurer Colleen Davis says that the top ratings shows Delaware’s ability to meet its financial obligations, shows the state’s credit-worthiness and allows the State to repay bonds at a lower costs. The top ratings from Moody’s, Fitch and S&P Global Ratings come after presentations by the Office of the State Treasurer, Department of Finance, Office of Management and Budget, and the Governor’s Office. This is the 23rd consecutive year that Delaware has received AAA ratings.
Additional information from the State Treasurer:
Highlights of the evaluation reports include:
- Healthy budget reserves, liquidity, and generally accepted accounting principles (GAAP)
- Recent strong growth allowing the state to fully fund two reserves to a combined 12% of revenues.
- Strong financial management and governance indicated by frequent revenue forecasting and a statutory limit on spending
- Lower business costs and the cost of living relative to neighboring states that could continue to attract new residents.
In its evaluation, Moody’s commented, “The State of Delaware maintains a strong credit position supported by healthy and stable finances, and strong management and governance. The state’s well-established process for monitoring revenue and its statutory limits on annual spending growth are important tools that aid financial management year after year. These tools and the state’s continued growth in reserves provide a cushion should unforeseen fiscal challenges arise or persist.”
Fitch noted, “The state has exceptional financial resilience from strong financial management that has contributed to the maintenance of ample financial cushion through economic cycles.”
Standard & Poor’s provided a similar summary. “Delaware’s demonstrated history of proactive fiscal management and well-embedded strong financial policies underpin the rating,” said S&P Global Ratings credit analyst Geoff Buswick.”
“Delaware remains committed to maintaining its Triple-A bond rating,” Treasurer Davis said. “We will continue to focus on strong financial performance, sound management practices, and effective leadership to ensure we continue to earn top ratings long into the future.”
Treasurer Davis is one of three bond issuing officers in Delaware, along with the Governor and the Secretary of State. The next bond sale is scheduled for on or about April 26, 2023.
