DOVER — The Delaware Department of Transportation recently retained its top-tier credit ratings ahead of a successful bond sale of more than $150 million earlier this month.
Moody’s Investors Service gave DelDOT its highest rating of AAA while Standard and Poor’s gave the agency its second highest rating of AA+. Those two organizations are half of the major credit rating agencies that help grade credit worthiness for public and private entities. The scores came in time for the department to go to bond sale on Nov. 19 to sell $150.5 million to fund the capital program in the next two years.
DelDOT’s current Capital Transportation Program includes more than 300 projects that represent $4.5 billion in infrastructure, as well as paving, open-end patching and structure maintenance. Retaining a high credit rating is critical for states looking to invest in future projects at favorable interest rates.
“The work done by the DelDOT finance team led by Lanie Clymer ensures that the department’s financial management remains strong and these ratings affirm that we are responsibly managing our transportation system and its needs,” DelDOT Secretary Nicole Majeski said in a prepared statement. “Infrastructure work is expensive and these ratings help us maximize the dollars available to us to deliver our work.”
The Series 2024 bonds and outstanding transportation system senior revenue bonds are secured by a claim on the state’s Transportation Trust Fund revenue, which is made up of fuel taxes, tolls, motor vehicle fees, and more. Because DelDOT funds its capital improvement projects from the trust fund, it requires a separate credit rating than the state’s General Obligation bonds.
S&P Global Ratings credit analyst Kevin Archer said that the agency’s rating reflects its view that with Delaware’s stable economy and population, the additional debt would be manageable.
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