Montpelier, VT – Treasurer Pieciak announced that Vermont’s credit ratings were affirmed by the major credit rating agencies, S&P Global Ratings (AA+), Fitch Ratings (AA+), and Moody’s (Aa1). Leveraging this fiscal strength, Pieciak and his office successfully refinanced outstanding higher-interest bonds, resulting in savings of approximately $3.7 million.
The ratings reaffirmed that Vermont’s financial outlook is stable, as the state earned the second highest ratings that an entity can receive. The ratings will ensure that borrowing costs for state projects remain modest, reducing costs to Vermont taxpayers. Treasurer Pieciak, the Legislature, and the administration also remain committed to decreasing the total amount of capital borrowing over time, consistent with the recommendations of the Capital Debt Affordability Advisory Committee.
After receiving the updated credit ratings, the state issued two sets of bonds, including over $70 million of Series A bonds which generated over $77 million for new capital projects. Over $36 million of Series B bonds were also issued to refinance bonds from 2014. That refinancing will save the state about $3.7 million.
“Vermont’s strong credit rating, which enabled these savings, is a testament to our state’s long tradition of disciplined governance and balanced fiscal management. Our state’s economic outlook is also strengthened by our tri-partisan commitment to reducing long-term pension liabilities, which we have made good progress on during the last few years,” said Treasurer Pieciak.
In addition to having historically high cash balances and income interest, Vermont’s statewide economic indicators like low unemployment and high educational attainment remain positive. Although the rating agencies noted the state’s ongoing challenges, including a tight housing market and aging population, Vermont’s finances remain stable and resilient.
“I’m grateful to Governor Scott and the legislature for making strategic investments in our state and supporting sound financial management,” said Treasurer Pieciak. “Thanks to their prudent fiscal work, and our shared commitment to meeting our demographic challenges, I believe Vermont is on a very sound financial footing and progressing toward again achieving a AAA rating.”
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