ATLANTA — Before flying out on an international trip to promote Georgia’s positive business environment, Gov. Brian Kemp announced the state still has the highest credit trading for bonds, according to all three main credit rating agencies.
Credit reports from FitchRatings, Moody’s Investor Service, and SP Global Ratings all show Georgia maintained its AAA bond rating, putting it among ten states that issue general obligation bonds with that score, according to officials.
Kemp said in a statement that the conservative approach to the state’s budget is what allowed the highest possible bond rating to remain in place, taking a swipe at national policies as a point of contrast.
“In the face of economic uncertainty on the national level due to bad policies coming out of Washington, D.C., our shared focus with the legislature on careful budgeting and strong economic development pipeline means Georgia will be a safe bet for job creators for years to come,” Kemp said in a statement. “These ratings enable us to save taxpayers millions of dollars each year with low interest rates for borrowing and they highlight the strength of our workforce and stability of our state economy. They also serve as the latest reminder of the results we are delivering every day to hardworking Georgians.”
In the near future, officials say the state of Georgia will be selling general obligation bonds, which will be used to pay for $671 million in capital projects.
Additionally, if interest rates allow it, the state plans to refund outstanding bonds “to achieve debt service savings on” part of the state’s outstanding debt.
The governor’s office said most of the bond proceeds will be used to pay for K-12 education, higher education, public safety, and economic development projects.
“The Peach State’s AAA ratings will enable the state to sell its bonds at the lowest possible interest costs when it takes bids for those bonds on June 27,” the governor’s office says. “The credit rating agencies’ individual ratings, which are AAA, Aaa, and AAA, respectively, are the highest ratings possible, and indicative of sound fiscal management.”
Officials said all three credit rating agencies “cited the strength of Georgia’s economy with a positive employment trend, full funding for the state’s rainy day fund, a balanced approach to primary revenue sources, and consistent funding of obligations as factors contributing to their rating scores.”