NEW YORK–(BUSINESS WIRE)–On October 3, Kroll Bond Rating Agency (KBRA) assigned a long-term
rating of AAA with a Stable Outlook to the State of Delaware’s General
State of Delaware
General Obligation Bonds
KBRA’s rating is based on the State’s very strong financial management
policies and practices, its strong financial position and liquidity and
a diverse economy anchored by financial services, chemicals and related
industries, the healthcare sector and higher education. KBRA views the
financial position of the State as very strong based on its conservative
budgeting policies, its comprehensive and timely process of revenue
estimation, high levels of financial reserves and strong liquidity
position. The State’s budgetary General Fund revenue sources reflect the
importance of the financial services and corporate activities industry
and historically these revenues have shown some volatility. In KBRA’s
view, the State is somewhat reliant on these revenue sources for its
budgetary General Fund operations; however, this concern is offset by
the State’s conservative management of its finances, its revenue
estimation process and the State’s ability to adjust disbursements.
The Stable Outlook reflects the State’s strong financial management
framework, including the Delaware Economic and Financial Advisory
Council (DEFAC) revenue estimation process and conservative budgeting
practices, which KBRA believes will continue to support the State’s
strong financial performance. The outlook also reflects KBRA’s
recognition of the State’s ongoing efforts to maintain its leading role
in corporate business development and the financial services industry.
To access the full report, click here.
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About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
Kroll Bond Rating Agency