Post by Logan on Feb 17, 2016 0:17:22 GMT -6
All three credit ratings services have awarded Delaware a AAA credit rating, the highest mark a government agency can receive.
Credit ratings are important to local governments because infrastructure projects such as new construction, water and sewer repairs or upgrades to schools and other buildings are funded through the issuance of general obligation bonds. The better the credit rating,the less interest a municipality will have to pay to attract buyers for those bonds. Bonds with the highest credit ratings have less risk of default.
The three agencies, Moody's Investors Services, Fitch Ratings and Standard & Poor's Ratings Service each cited the state's economic diversity and employment growth. Each ratings service factored DuPont's upcoming merger with the Dow Chemical Co. and the chemical giant's plan to lay off 1,700 Delaware workers through March.
Last month, Moody's said DuPont's downsizing could be a "credit negative" event for the city, state and county. Those layoffs mean less tax revenue for the state at a time when state legislators are grappling with a structural deficit. Despite Moody's concern, the ratings service reaffirmed the state's AAA rating.
Read more: www.delawareonline.com/story/money/business/delawareinc/2016/02/16/delaware-earns-aaa-credit-rating-agencies/80468830/
Credit ratings are important to local governments because infrastructure projects such as new construction, water and sewer repairs or upgrades to schools and other buildings are funded through the issuance of general obligation bonds. The better the credit rating,the less interest a municipality will have to pay to attract buyers for those bonds. Bonds with the highest credit ratings have less risk of default.
The three agencies, Moody's Investors Services, Fitch Ratings and Standard & Poor's Ratings Service each cited the state's economic diversity and employment growth. Each ratings service factored DuPont's upcoming merger with the Dow Chemical Co. and the chemical giant's plan to lay off 1,700 Delaware workers through March.
Last month, Moody's said DuPont's downsizing could be a "credit negative" event for the city, state and county. Those layoffs mean less tax revenue for the state at a time when state legislators are grappling with a structural deficit. Despite Moody's concern, the ratings service reaffirmed the state's AAA rating.
Read more: www.delawareonline.com/story/money/business/delawareinc/2016/02/16/delaware-earns-aaa-credit-rating-agencies/80468830/