Top ratings reinforce state government’s strong financial stewardship; bond sale will fund key infrastructure projects 

WILMINGTON - Governor Matt Meyer announced Friday that the State of Delaware completed a $317 million bond sale on Tuesday, April 29, after once again receiving the highest possible AAA/Aaa ratings from all the nation’s leading rating services.

Delaware’s bonds have now received unanimous top ratings from Fitch, Moody’s, and S&P Global Ratings for 25 years consecutively. After the State received numerous competitive bids for this week’s bond sale, it was ultimately awarded to Bank of America at a rate of 3.836%.

“These bond sale results, and our continued triple-A credit ratings, are testaments to our stewardship of Delawareans’ tax dollars,” said Governor Matt Meyer. “As our economy continues to grow, my administration is committed to leveraging our financial strength to deliver for the people of Delaware while maintaining our hard-earned reputation as a prime destination for investment and incorporation.”

Rating agencies consider factors including the State’s financial performance and management, overall debt load, and approach to long-term issues ranging from financial obligations to economic development trends. The highest ratings, AAA/Aaa, are granted to the states that demonstrate the most diligent fiscal oversight and most stable credit outlook. The higher a state’s credit rating, the lower its cost to repay bonds.

“As Delawareans, we should all take pride in our long-standing culture of financial excellence,” said State Treasurer Colleen C. Davis. “My office works to maintain that culture every single day through prudent management of the State’s portfolio, and we’re fortunate to have strong partners across the government pulling in the same direction. All that enables us to make meaningful investments in infrastructure, education, and more – creating real value for people across our state.”

Funds from the bond sale will finance projects including school construction throughout the state, the restoration and expansion of the historic Custom House in Wilmington, bridge maintenance, beach replenishment, and more.

“The success of this sale is a clear signal that Delaware’s financial management continues to earn the trust of investors,” said Secretary of Finance Michael Smith. “By maintaining our triple-A ratings, we’re able to borrow at the lowest possible cost — which means more of every dollar goes directly into the infrastructure, schools, and services that matter to Delawareans. It’s a strong outcome for our state and a reflection of our long-term commitment to fiscal responsibility.”

The agencies’ rating reports all emphasized the importance of Delaware’s budget process and effective financial management. S&P Global cited the State’s “historical trend of strong fiscal oversight that has allowed the state to manage its budgets through various economic cycles,” Moody’s noted “its healthy and stable finances and its strong management and governance,” and Fitch mentioned its “strong financial performance, supported by proactive management and institutionalized protections designed to ensure surplus operations.” They all reaffirmed Delaware’s outlook as “stable,” referencing the state’s strong reserves and ongoing economic growth.

Rating reports can be found at the Delaware Department of Finance’s website.