Missouri's AAA Credit Rating Reaffirmed by S&P, Saving Taxpayers $1.6 Million Through Refinancing Action

Press Release

Missouri's spotless AAA credit rating will save taxpayers $1.6 million through action taken today by the Missouri Board of Public Buildings to refinance bonds, Gov. Jay Nixon said. The savings will occur through the refinancing of $21.4 million of Special Obligation Bonds, Series A 2015. Also included in today's transaction is the sale of bonds to finance the $38.5 million renovation ofLafferre Hall at the University of Missouri-Columbia's College of Engineering.

"From Day One, we have maintained a laser-like focus on balancing the budget and maintaining Missouri's perfect AAA bond rating," Gov. Nixon said. "Today, our continued fiscal discipline has once again produced savings for taxpayers while facilitating smart investments in STEM education at our state's flagship university."

Ahead of today's transaction, Standard & Poor's Rating Services reaffirmed Missouri's AAA rating, noting the Governor's spending restrictions have helped to "bring projected spending in line with the current level of projected revenues."

Fitch Ratings attributed the state's AAA general obligation bond rating to Missouri's "long record of conservative operations" and "consistent willingness to support fiscal balance."

Moody's Investors Service noted that Missouri's rating is based on strengths such as a "budget reserve fund that provided the state with short-term liquidity without a need for external borrowing" and "historically conservative fiscal policies."

Missouri is one of the few states with a AAA credit rating from all three rating agencies. This sends a strong signal to businesses that Missouri is a safe place to invest and saves taxpayers millions of dollars in interest annually.

The University of Missouri-Columbia's College of Engineering project, which received bipartisan approval from the General Assembly last year, will repair and renovate portions of Lafferre Hall built in 1935 and 1944 respectively.

The renovations will produce an additional 20,000 square feet for research space for engineering disciplines. The University of Missouri estimates the project will provide space for 3,300 students and eliminate more than $15 million in deferred maintenance.

Source