Wednesday, June 28, 2006
Delaware’s Triple A Bond Rating Reaffirmed by Wall Street
Dover – Governor Ruth Ann Minner announced today that all three of the major rating agencies, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, have reaffirmed Delaware’s triple-A rating. The ratings were received in conjunction with a sale of the state’s general obligation bonds scheduled for July 11th through 13th.
“This is the 11th consecutive time that Delaware has earned a triple-A rating,” says Gov. Minner. “It is because of this premier rating that investors find our bonds appealing, and we are pleased to be able to offer them to Delaware’s investors.”
In its second offering to individual investors, Delaware will reserve $43 million of an approximately $172 million issue to be sold on July 11th and 12th through local brokers. The bonds, which are tax-exempt for federal and Delaware income purposes, will be available in increments of $1,000.
To correspond with the sale of the bonds, Delaware has dedicated an area of its website to investor information. The site, accessible through www.delaware.gov, will offer details about the upcoming sale, such as a list of participating brokers, as well as the state’s financial reports.
“The site will offer a convenient place for investors and potential investors to learn more about Delaware’s prudent financial management,” said Gov. Minner.
For example, the credit reports issued by each of the rating agencies will be available online at http://www.state.de.us/gic/investorinfo.
“Delaware’s bonds are in great demand because this state has taken a fiscally responsible approach to managing state government,” Secretary of Finance Richard S. Cordrey said. “Not only are we pleased that we can offer our bonds to our own state residents, but now we are able to provide a convenient place for investors to go to monitor the safety and security of their investment.”
The proceeds of the July bond sale will fund the construction of public and higher education buildings and other state facilities.
“Thanks to the hard work of the Governor and the General Assembly, we are now on our second sale of these bonds that offer Delawareans the first crack at investing in the state’s future,” said State Treasurer Jack Markell. “It’s a true win-win situation for Delaware and its citizens.”
Delaware is one of only six states currently holding a triple-A rating from each agency. The triple-A rating is the highest rating awarded by the nationally recognized rating agencies and, having the lowest assessment of repayment risk, allows state government to borrow money at the lowest possible interest rate, thus ultimately saving its taxpayers money.
Merrill Lynch was selected as the lead agent for the marketing of the retail bonds and will be joined by A.G. Edwards, Alta Capital Group, Apex Pryor Securities, Bank of America Securities, Bear Stearns, Citigroup, Edward Jones, Ferris Baker Watts, First Albany, Janney Montgomery Scott, Loop Capital Markets, Stifel Nicolaus & Company and UBS Investment Bank.
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