Bond rating upgraded
CARSON CITY – The state of Nevada can now get an even better interest rate and lower costs when it issues bonds, thanks to an upgraded bond rating from Standard and Poor’s.
Treasurer Brian Krolicki said the rating service now lists Nevada’s bonds at AA+ – just one notch below the highest possible rating. He said that matches the ratings Nevada has from the other two top rating services, Fitchratings and Moody’s Investor Service.
The better the bond rating, the lower the interest rate and other costs the state must pay when issuing government bonds to build roads, state and university buildings and other projects.
Krolicki said the benefits will be immediate, saving taxpayers an estimated $50,000 in bond insurance on the $154 million in general obligation bonds being put out for sale today.
Those bonds include money for state lands, parks and wildlife projects, nearly $3 million for cultural affairs projects, including work on the Piper’s Opera House, and improvements to the Marlette water system, which supplies water not only the capital but Virginia City.
Standard and Poor’s officials cited Nevada’s commitment to putting money into a stabilization reserve along with the state’s steady economic growth as factors justifying the upgrade.