Treasurer Pieciak Announces Vermont Citizen Bond Sale on August 24, Credit Rating Agencies Reaffirm Vermont’s Aa1 / AA+ Status | Office of the State Treasurer Skip to main content

Treasurer Pieciak Announces Vermont Citizen Bond Sale on August 24, Credit Rating Agencies Reaffirm Vermont’s Aa1 / AA+ Status

August 22, 2023

Montpelier, VT - State Treasurer Mike Pieciak announced that up to $53.5 million of State of Vermont Citizen Bonds will be offered for sale on August 24. It’s the state’s first bond offering in more than two years.

Vermont residents and businesses will be given first priority to the bonds. Maturities will range from one to 10 years, with proceeds going toward previously issued state debt. Bonds may be purchased in $1,000 increments and must be transacted through a registered broker or dealer. The Treasurer’s Office does not sell the bonds.

Morgan Stanley will serve as senior managing underwriter for the bond sale and Raymond James and UBS will serve as co-managers. Seven additional firms will participate in the selling group, including Academy Securities, Blaylock Van, Drexel Hamilton, Mesirow Financial, Oppenheimer, Rockfleet, and Stifel. 

In connection with the offering, the State of Vermont’s credit ratings were recently reaffirmed by S&P Global Ratings (AA+), Fitch Ratings (AA+), and Moody’s (Aa1). Aa1 and AA+ are the second highest ratings that an entity can receive. The issued reports affirm Vermont’s strong financial health and ability to pay off debt. Vermont and Massachusetts are the highest rated states in New England.

“Vermont’s strong credit rating will ensure lower borrowing costs for our state, thus reducing costs to Vermont taxpayers,” said Treasurer Mike Pieciak. “Thanks to the collaborative work of Governor Scott and the legislature to make critical investments in our state, and ensure sound financial management and budget practices, I believe Vermont is on the path to once again achieving AAA status.”

“Maintaining this rating is good news for Vermont, and I want to thank Treasurer Pieciak and his team for his collaborations,” said Governor Scott. “As we move forward, my team and I will continue to work with our partners to address our demographic trends and make Vermont a more affordable place to live, work and do business.”

The credit rating agencies generally credited the state’s strong financial outlook to historically high cash balances and budget reserves. Also favorably noted were recent legislative reform efforts aimed at reducing long-term pension and other post employment benefits. 

Encouraging demographic trends also contributed to the state’s strong credit rating. Vermont experienced an uptick in domestic in-migration of high-income earners in 2020 and 2021 due to the acceptance of remote work and the state’s unique landscape attracting out-of-staters. Whether this recent momentum fosters long-term demographic and economic growth in line with the rest of the United States will be closely monitored by the rating agencies.

Under no circumstances should this announcement of bond issuance be considered an offer to sell or a solicit to offer to buy, nor shall there be any sales of the bonds in any jurisdiction in which such offer, solicitation, or sales would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.