(The Center Square) – Georgia has again received the highest bond rating of any top three rating agencies, Governor Brian Kemp announced.
Georgia’s triple-A rating allows the state to sell its bonds at the lowest possible interest rate, saving the state’s taxpayers money. Only nine states have the rating. Kemp attributed the performance to Georgia’s Conservative leadership.
“In a year of unprecedented challenges – working with the General Assembly – we have cut taxes, balanced the state budget, invested in essential services and avoided draconian budget cuts,” Kemp said in a statement. “These decisions resulted in the unemployment rate falling below the national average and the lowest of the ten most populous countries, increasing employment and investment and being named Top Economic State for the eighth year in a row. First, We Will Keep Georgians the Best State, to live, work and raise a family. “
The state plans to launch general bond offers in early June. The sale of bonds will fund over $ 1.1 billion in capital projects. By raising funds through general bonds, the government can spread the costs over several years instead of using cash flow or current income to cover project costs.
Under Georgian law, bonds must be used to build or repair state property and to provide loans to local governments or their institutions.
Georgia sold more than $ 1.13 billion in bonds with general commitments in August to support school construction and transportation projects, among other things.
“Georgia’s ‘AAA’ Issuer Default Rating (IDR) reflects the government’s demonstrated willingness and ability to maintain budgetary balance and a broad, growth-oriented economy that supports revenue growth over time,” said FitchRatings analysts. “Georgia’s long-term liability burden is low and debt management is generally conservative. The state issues bonds regularly to meet capital requirements and repayments are rapid.”
