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SALT LAKE CITY — The state of Utah announced Thursday the closing of two refunding bond sales and the affirmation of the state’s AAA general obligation bond rating by all three rating agencies.
Utah is one of only 10 states in the nation to hold a Triple-A credit rating from all three major credit rating agencies — Standard & Poor’s, Moody’s Investors Service and Fitch Ratings.
“Strong bond ratings provide external validation that we manage our state budget wisely and help us borrow at the best rates available when we need to finance large projects,” said Gov. Gary Herbert.
The refunding transactions, similar to the refinancing of a home mortgage at a lower rate, will save the state more than $16 million, explained Utah Treasurer Richard Ellis.
Once again we saw extremely strong demand in the market for our bonds, which rewards our taxpayers with extraordinarily low borrowing costs.
–Richard Ellis, state treasurer
“We closely monitor the state’s debt for these refinancing opportunities, and once again we saw extremely strong demand in the market for our bonds, which rewards our taxpayers with extraordinarily low borrowing costs,” Ellis said.
The state pays very low interest rates on its debt because of the superior ratings, he noted.
Utah’s history of AAA bond ratings dates back to 1965 when Standard & Poor’s initiated its rating system. The state’s AAA rating with Moody’s dates back to 1973, and to 1992 with Fitch Ratings.