St Paul (KROC AM News) – The Minnesota state government just sold nearly $900-million in bonds at interest rates under 2-percent.
State officials say the proceeds from the sale will pay for “capital construction projects such as asset preservation, higher education facilities, highway projects, and economic and redevelopment projects previously authorized.”
The low rates were the result of the state’s high credit rating and strong demand for the bonds by investors.
“Minnesota continues to manage our debt well, saving taxpayer dollars,” said Minnesota Management and Budget Commissioner Jim Schowalter. “As a AAA-rated state, we received historically low interest rates that allow us to make smart investments in Minnesota, reduce our cost of borrowing, and nimbly respond to challenges created by the COVID-19 pandemic.”
Schowalter says before the bond sales, Fitch and Standard & Poor’s reaffirmed Minnesota’s AAA credit ratings and Moody’s reaffirmed the Aa1 rating reflecting the state’s diverse economy, history of strong financial results, strong governmental framework, and moderate debt levels. A state’s credit ratings play an important role in obtaining low interest rates for a bond sale. AAA is the highest credit rating awarded by the agencies.
News update: Another deadly motorcycle accident in Minnesota.
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