May 5, 2024
ATLANTA – The state of Georgia will take $671 million in bonds for capital projects to the market later this month armed with the highest rating from each of the three main credit rating agencies.
Moody’s Investors Service, S&P Globing Ratings, and FitchRatings gave Georgia a score of AAA.
“These ratings enable us to save taxpayers millions of dollars each year with low interest rates for borrowing, and they highlight the strength of our workforce and stability of our state economy,” Gov. Brian Kemp said Wednesday.
The good news about Georgia’s bond rating comes despite three consecutive months of decreasing state tax revenues. Still, the state is expected to close out fiscal 2023 at the end of this month with a healthy budget surplus built up during the last several years.
“Georgia’s AAA Issuer Default Rating reflects the state’s proven willingness and ability to maintain fiscal balance and a broad-based, growth-oriented economy that supports solid revenue gains over time,” FitchRatings wrote in its analysis.
“The state is well positioned to deal with economic downturns with exceptionally strong gap-closing capacity due to its broad control of revenue and spending, coupled with prudent reserve-building practices.”
Most of the proceeds from the bonds will go toward K-12 schools, higher education, public safety, and economic development projects. The bonds will be sold on June 27.
