Delaware retains its AAA Bond Rating.
This is the 23rd consecutive year that the state has received a top grade. The three top rating services – Moody’s, Fitch, and S&P Global Ratings – each gave the state a AAA rating.
The Office of the State Treasurer along with the Department of Finance, Office of Management and Budget, and the Governor’s Office all gave presentations prior to receiving the rating.
State Treasurer Colleen Davis explains what this rating means for the state.
"We maintain creditworthiness, and it allows us to borrow over a fan of time at the lowest possible cost to the taxpayers,” said Davis. “It also means that we've taken some old bonds that did not have as favorable rates attached to them and refinance those, and again that's really for sort of a longer-term benefit to taxpayers."
The state was lauded for its healthy budget reserves, liquidity, and generally accepted accounting principles, as well as lower business costs and cost of living compared to neighboring states allowing Delaware to attract new residents.
State Treasurer Colleen Davis says maintaining the top rating through the pandemic is significant.
"It's always fantastic to receive a AAA rating. To receive it from all three of them is sort of a bit of a gold standard for us in Delaware, but I think the other piece of it is just the fact that we've come through some very turbulent times in the last couple of years," said Davis.
Davis adds the state intends to focus on strong financial performance, sound management practices, and effective leadership to keep earning top ratings.
