Published: May 01, 2009 01:49 pm         

State announces bond sale, AAA ratings confirmed once again

ATLANTA - Governor Sonny Perdue today announced the sale of up to $314,530,000 in tax-exempt bonds, currently scheduled for May 4 and 5, through negotiated sale. This method of sale gives retail investors the ability to buy Georgia bonds directly by placing orders with their brokerage firm on the day of the sale. By expanding the investor base and increasing demand, the state expects the transaction to result in a favorable outcome for both the buyers and the state.

“In these challenging economic times, this bond offering gives Georgians the opportunity to invest in their own state while strengthening their portfolio,” said Governor Perdue. “At the same time Georgia investors add a stable, non-taxable investment to their collection of investments, they will also help to build schools, state facilities and other projects that put their neighbors to work.”

The Georgia State Financing and Investment Commission (GSFIC) approved the sale of the bonds at its February 4 meeting following the successful sale of just over $613 million in bonds at historically low interest rates.

Moody's, Fitch and Standard & Poor's have assigned their triple-A bond rating with a stable outlook to the State's General Obligation Bonds. The rating firms' individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate what a great value Georgia municipal bonds are to investors. The bonds are backed by the full faith and credit of the state of Georgia and, subject to the limitations and conditions described in the Official Statement relating to the Bonds, interest on the bonds is, in the opinion of bond counsel, excludable from gross income for federal and Georgia state income tax purposes.

Individuals can learn more about the Series 2009C and Series 2009D General Obligation Bonds at www.buygeorgiabonds.com.

The bond sale is a part of the capital outlay program approved in the state’s 2009 budget. The FY 2010 appropriations bill authorizes an additional $1.2 billion in general obligation bonds for K-12 school construction, improvements and expansions at university campuses, and a variety of other projects. In addition to low interest rates, the state is also benefitting from low construction costs and putting Georgians to work building these needed projects.

“Georgia's longstanding ‘AAA’ rating is the result of its conservative debt management, consistent maintenance of sound finances, and a diversified economy,” Fitch ratings indicated in their ratings report. The report added, “The state is demonstrating conservative fiscal management in its response to the recession.”

“These top bond ratings affirm that our proactive, conservative fiscal practices and our good management of the state’s debt structure put Georgia in better shape than most states,” Governor Perdue added. “These ratings will save the state in the form of lower interest rates, and will generate attention from potential buyers looking for a stable, low-risk investment option.”

     

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