Interim Update - February 27, 200727-Feb-2007
February 27, 2007
This week I am pleased to share with you that Maryland State Treasurer Nancy
K. Kopp announced today that all three major bond rating agencies again have affirmed the State's strong Triple AAA bond rating in preparation for the sale next week of $325 million of General Obligation bonds.
Maryland is one of only seven states to be awarded the AAA rating, the highest possible rating, from all three major bond rating agencies: Fitch Ratings, Moody's Investors Service and Standard & Poor's. The rating means that the State can borrow money to undertake new critical building projects such as public schools, hospitals and/ /prisons while paying relatively low interest rates and saving taxpayers millions of dollars.
Treasurer Kopp noted, "For many years, during good and bad times, we have retained our coveted Triple AAA rating. The three-bond rating agencies continue to recognize, and are impressed by Maryland's strong and prudent fiscal management, as evidenced by the highest possible rating attainable. This recognition of Maryland's outstanding fiscal management should be a source of great pride to the General Assembly, the Governor and citizens."
The Maryland Board of Public Works, comprising Governor Martin O'Malley,
Comptroller Peter Franchot and Treasurer Kopp, will preside over the bond sale on Wednesday, February 28, 2007 in Annapolis.
Proceeds from the capital improvement bonds will cover the acquisition and construction of State facilities; public schools; community colleges; jails and correctional facilities, as well as grants to local governments and non-profit institutions for hospitals, cultural and other projects.
The State last conducted a General Obligation bond sale of $350 million on July 26, 2006, the first in fiscal year 2007, using the Parity electronic bidding system. The winning bidder was Merrill, Lynch with a 4.18 percent interest rate.
Treasurer Kopp said, "The Governor, the Comptroller and the General Assembly have followed a long custom in Maryland in working together to ensure that Maryland remains deserving of the Triple AAA rating. The citizens of Maryland benefit from this teamwork and vote of confidence by the rating agencies."
Very truly yours,
Harford and Cecil Counties