State sells bonds for highway, water projects

Thursday, Nov. 30, 2000 | 11:10 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The state has sold $117.1 million in bonds with most of the money going to finance highway projects in Clark County and Carson City.

State Treasurer Brian Krolicki said today the state will pay an interest rate of between 4.8 percent and 5.1 percent on the bonds. Nevada is among the highest in the nation in its bond rating, Krolicki said.

Six states have AAA bond ratings and Nevada has an AA, the treasurer said. "That's really strong," he said.

Dain Rauscher Inc. purchased $100 million in the 10-year highway improvement bonds and the state will pay 4.81 percent interest. The money will be used to finance projects on U.S. 95 in Las Vegas and for work on the Carson City bypass.

Morgan Stanley, Dean Witter & Co. purchased $15.5 million in general obligations bonds at an interest rate of 5.1 percent. These bonds will finance water and sewer projects in Carson City, Douglas County and Lyon County. These are 20-year bonds.

Morgan Stanley, Dean Witter & Co. also bought $1.5 million in general obligation bonds to finance projects for safe drinking water. The 20-year bonds sold at a 5.1 percent interest rate.

Krolicki said both Moody's Investor Service and Standard & Poor's reaffirmed Nevada's AA2 and AA ratings respectively on the state's general obligation bonds. The highway bonds were assigned an AA3 rating from Moody's.

Moody's said Nevada has a historically low debt level and practices conservative fiscal management that allows it to respond quickly to financial emergencies.