Steve Bullock today announced the state successfully sold bonds at a
historically low interest rate and can move forward with planning
infrastructure projects across Montana. The sale of $33 million in bonds will
allow the state to begin construction projects that will create jobs and
stimulate the economy as soon the projects are ready and it is safe to do so.
pleased that Montana has upheld its strong ratings and was able to sell bonds
at a historically low rate to move forward with planning and designing critical
infrastructure projects across the state,”
Governor Bullock said. “By
selling bonds today, we are ensuring that when the time comes, we can
immediately boost our economy by putting shovels to dirt and creating
sale of $33 million in infrastructure bonds results in an estimated $55.3
million investment in our communities. This investment in critical
infrastructure will support an estimated 412 jobs and more than $20.5 million
three ratings agencies upheld their strong ratings and stable outlook
predictions. Montana received an AA+ rating from both Fitch and Moody’s and an
AA rating from S&P Global Ratings.
'AA+' IDR is based on its diversifying economic base, solid growth prospects,
low liability position and conservative financial practices,”
Fitch wrote in its
“The state's consistently conservative approach to fiscal
management has enabled it to maintain steady operating performance, address
spending priorities for education, health care and infrastructure, and build
formal reserves. Increasing economic diversification in recent years continues
to aid revenue growth, providing support for the stable outlook.”
of Montana’s strong ratings, the state was able to go to market to sell bonds
and did so at a historically low rate of 1.56%.
afternoon, the Board of Examiners executed the Bond Purchase Agreement,
finalizing $33 million in bond issuance for infrastructure projects. This is
the first of three issuances of bonds that will total up to $80 million.
Bullock signed legislation in 2019 to fund sewer, water, bridges, buildings and
other public works projects. It is the first time the Legislature has agreed to
a comprehensive statewide bond package in over a decade.
state originally planned to sell bonds in November to guarantee funds would be
available in time for construction season, but the bond sale was delayed over
inaccurate findings during a routine audit of the Medicaid program by the
Legislative Audit Division. The state again planned to go to market to sell
bonds in March but was unable to do so because of a volatile market caused by
COVID-19. In February, the Governor’s Budget Office offered to meet with all
three ratings agencies to discuss issues with the Medicaid Audit and why its
inaccurate conclusions are not a financial liability for the state. On rating
calls, all three upheld their strong ratings and stable outlook prediction.