Governor Carney Announces High Ratings from Moody’s Investors Service, Standard & Poor

29 August, 2022  | State of Delaware

DelDOT Maintains Strong Credit Position, Delaware’s AAA Rating Also Reaffirmed

(WILMINGTON, Del.) – Governor John Carney recently announced that Moody’s Investors Service has assigned an Aa1 rating to the Delaware Transportation Authority Series 2022 transportation system senior revenue bonds and Standard & Poor’s assigned its ‘AA+’ long-term rating to Delaware Transportation for the 2022 revenue bonds series. Both rating agencies affirmed credit ratings of Aa1 (Moody’s) and AA+ (S&P) for the Authority’s transportation system senior revenue bonds series outstanding, both agencies issued a stable outlook for the transportation system revenue bonds. Moody’s has also reaffirmed the State’s AAA rating, the highest rating available for any state.

“Delaware continues to receive high marks for fiscal management which allows us to sustain the important investments we’ve made in our schools, our infrastructure, our communities, and our economy, including efforts to address the impacts of COVID-19 and future public health crises,” said Governor Carney. “All Delawareans can be proud of the work we’ve done with the General Assembly to boost the State’s finances prior to COVID-19, and the sustainable budget we passed this legislative session. These steps will help ensure Delaware is the best place to live, work, and raise a family.”

The Moody’s opinion lists other strengths including “lower business costs and cost of living relative to neighboring states” and the recently enacted FY23 budget that increases State reserves, improves funding of post-retirement healthcare benefits, and “directs a large share of expected revenue to non-recurring items such as capital investments.”

Moody’s Investors Service and Standard & Poor’s provide independent rating opinions on the credit worthiness of public agencies and private organizations. These ratings are established to provide investors with information before the purchase of bonds from these public and private entities. The Delaware Transportation Authority (DTA) is the legal and financial authority under which the Department of Transportation issues its debt.

“We greatly appreciate the recognition of the Department’s strong financial and operational management particularly throughout the pandemic,” said Secretary of Transportation Nicole Majeski. “We will continue to work diligently to be good stewards of taxpayer dollars and use these savings to further invest in our state’s transportation system. The excellent work done by our finance team, led by Lanie Clymer, ensures our financial standing remains strong as we support the largest capital program in the Department’s history.”

DelDOT’s current Capital Transportation Program will invest more than $4.5 billion in infrastructure maintenance and projects over the next six years.

“Moody’s reaffirmation of the State’s Triple A rating recognizes continuing efforts of our Governor and General Assembly to build upon the sound fiscal practices that have served our State so well,” said Secretary of Finance Rick Geisenberger.  “Ultimately, these efforts benefit all citizens and taxpayers by providing the State with access to the lowest possible cost of capital.”

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