West Virginia saved $26 million on bonds sale
“Today's bond sale is a testament to the hard work we've done over the past twenty years to get our financial house in order,” Gov. Tomblin said.
The refunding bonds were sold as part of a competitive sale, generating $25.9 million in net savings. More than $25 million will be reinvested to fund capital road projects by the West Virginia Department of Transportation in FY2016.
Rating agencies affirmed the bonds' positive ratings. Standard and Poor's rated the bonds as AA, Fitch rated the bonds as AA+, and Moody's rated the bonds Aa1.
Moody's noted its Aa1 rating “reflects the state's ongoing trend of fiscal conservatism and disciplined financial management evidenced by consistently strong reserve fund balances for almost a decade.
"Improvement in the funded ratio for the state's pension systems and actions taken to reduce the outstanding other post-employment benefit (OPEB) liability are also positive. The rating also incorporates West Virginia's historically underperforming economy, which continues to show signs of modest growth and diversification." ■