Missouri’s spotless AAA credit rating will save taxpayers $1.6 million through action taken today by the Missouri Board of Public Buildings to refinance bonds, Gov. Jay Nixon said. The savings will occur through the refinancing of $21.4 million of Special Obligation Bonds, Series A 2015. Also included in today’s transaction is the sale of bonds to finance the $38.5 million renovation ofLafferre Hall at the University of Missouri-Columbia’s College of Engineering.
Ahead of today’s transaction, Standard & Poor’s Rating Services reaffirmed Missouri’s AAA rating, noting the Governor’s spending restrictions have helped to “bring projected spending in line with the current level of projected revenues.”
Fitch Ratings attributed the state’s AAA general obligation bond rating to Missouri’s “long record of conservative operations” and “consistent willingness to support fiscal balance.”
Moody’s Investors Service noted that Missouri’s rating is based on strengths such as a “budget reserve fund that provided the state with short-term liquidity without a need for external borrowing” and “historically conservative fiscal policies.”
Missouri is one of the few states with a AAA credit rating from all three rating agencies. This sends a strong signal to businesses that Missouri is a safe place to invest and saves taxpayers millions of dollars in interest annually.