Thursday, Dec. 2, 2010 | 2:16 p.m.
Efforts by the state of Nevada to sell bonds at favorable rates to finance capital projects and refinance existing debt received a boost today when Standard & Poor's and Fitch Ratings affirmed their stable outlooks on the state's debt.
Despite a looming state budget deficit of up to $3 billion, both assigned high AA+ ratings to bonds the state plans to sell this month that could total $226 million.
"State financial operations are conservatively managed to produce budgetary balance even in light of the deep recession that has had a severe impact on state revenues," Fitch said in a ratings report today on Nevada's debt.
The stable outlooks were welcomed by the State Treasurer's office, which is in charge of selling the bonds. On Tuesday, Moody's Investors Service revised from stable to negative its outlook on the state's debt.
Still, Moody's maintained its relatively high ratings on the state's debt, issuing Aa1 ratings to the $226 million in bonds the state is now marketing. Aa debt is rated just a notch below the top-rated Aaa debt.
"That's incredibly positive news for the state," Senior Deputy State Treasurer Mark Mathers said of Moody's AA1 rating.
Nevada last sold such bonds in November 2009 at a favorable interest rate of 3.14 percent.
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