(The Center Square) – A trio of credit rating agencies has assigned Georgia AAA ratings, which officials say will help the state cut costs when it launches bids this month for sell bonds.
Georgian officials have trumpeted ratings from FitchRatings, Moody’s Investors Service and S&P Global Ratings to underscore what they say is the state’s stable fiscal outlook.
“Achieving the highest possible government bond ratings for another year is the result of decades of conservative state leadership and our balanced approach to protecting both lives and livelihoods throughout the world. long of the COVID-19 pandemic,” Gov. Brian Kemp, a Republican, said in an announcement. This “news further underscores that the Peach State remains the best place to live, work and raise a family.”
According to a press release, only nine states that issue general obligation bonds meet this rating standard.
“Georgia’s ‘AAA’ revenue bond ratings reflect the state’s proven willingness and ability to maintain a balanced budget and a broad-based, growth-oriented economy that supports strong revenue growth over the time,” FitchRatings said in its analysis. “…The state is well placed to weather economic downturns with exceptionally strong gap-closing capacity, due to its broad control over revenues and expenditures, coupled with its reserve-building practices.”
Georgia plans to take bids on June 22 for the general obligation bond sale to fund $754 million in capital projects. Proceeds from the bonds will primarily fund K-12 education, higher education, public safety and economic development.
If interest rates allow, the government could redeem outstanding bonds to reduce its debt service costs on some of the government’s outstanding debt.