Atlanta, GA (Press Release) - Governor Sonny Perdue announced that Georgia has once again received triple-A bond ratings from all three rating agencies. The ratings reflect Georgia’s conservative fiscal management during the recession, which caused three straight years of revenue declines. AAA ratings mean the State typically pays very low interest rates on its debt.
“These ratings are a reflection of the hard work we have put in to manage the budget during the recession,” said Governor Perdue. “We have coveted our triple-A ratings because of the resulting interest savings in the state budget.”
Moody’s, Fitch, and Standard & Poor’s have assigned their triple-A bond ratings with a stable outlook to the State’s General Obligation Bonds. The rating firms’ individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate the value of Georgia municipal bonds to investors.
The rating agencies credited the state’s active management of the budget, including withholding allotments to agencies to ensure expenditures do not exceed revenues. Georgia is one of just a handful of states to maintain the highest bond ratings possible during these difficult economic times.
“Here in Georgia we've been able to make the difficult decisions necessary to balance the budget without raising taxes or incurring massive debt while still funding our key priorities, like education and public safety,” said Lt. Governor Casey Cagle. “As we see with today’s announcement, Georgia remains an attractive state for investment and job creation, thanks in part to our responsible management of the state’s budget and tax policy.”
“Georgia's conservative fiscal leadership during these challenging economic times deserves much of the credit for maintaining the state's triple-A bond ratings,” said House Speaker David Ralston. “These high marks will mean lower interest rates for the state and a better use of our limited taxpayer resources.”
The ratings come in advance of this week’s competitive sale of up to $975 million in bonds which includes a refunding component and funding for capital projects authorized in the FY 2010 and 2011 budgets. Projects include local school construction, higher education facilities, and public safety projects.