Better Bond Rating Will Save Georgia Money | Georgia
(The Center Square) – Georgia has once again achieved the highest bond rating of the three major credit rating agencies, Governor Brian Kemp said.
Georgia’s triple A rating will allow the state to sell its bonds at the lowest possible interest rate, saving taxpayers money. Only nine states are popular. Kemp credited Georgia’s conservative leadership for this accomplishment.
“In a year of unprecedented challenges – working with the General Assembly – we have reduced taxes, balanced the state budget, invested in essential services and avoided drastic budget cuts,” said Kemp in a press release. “These decisions have resulted in an unemployment rate below the national average and at the lowest of the ten most populous states, record growth in employment and investment, and the achievement of the title of best state for business for the eighth consecutive year. Georgians first, we will continue to make Georgia the best state in which to live, work and raise a family. “
The state plans to launch general bond offerings in early June. The bond sale will fund more than $ 1.1 billion in capital projects. Borrowing money through general bonds allows the government to spread costs over several years instead of drawing on cash flow or current income to cover project expenses.
Georgian law requires bonds to be used to build or repair public property and generate loans for local governments or their entities.
Georgia sold more than $ 1.13 billion in general bonds in August to support school construction and transportation projects, among others.
Georgia’s ‘AAA’ Issuer Default Rating (IDR) reflects the state’s demonstrated willingness and ability to maintain balanced budgets and a broad-based, growth-oriented economy that supports revenue growth in the country. over time, ”FitchRatings analysts said. “Georgia’s long-term liability burden is low and overall debt management is prudent. The state regularly issues bonds for capital requirements and principal amortization is rapid.”