Missouri's excellent AAA credit rating has enabled the state to move forward with refinancing outstanding debt at a lower interest rate in two transactions that combined, will save taxpayers an estimated $44 million this fiscal year, Gov. Jay Nixon said today. The Governor made the announcement after meetings this morning with the Board of Public Buildings and the Board of Fund Commissioners. Both boards today gave preliminary authorization for the refinancing.
The Board of Public Buildings refunding is estimated to save $20.6 million in FY 2013, and the Board of Fund Commissioners refunding is estimated to save $23.3 million in FY 2013. These savings were assumed in the budget approved by the General Assembly.
"With these savings, we are again seeing the benefits of Missouri earning the highest marks from the top credit rating agencies," Gov. Nixon said. "The lower interest rate translates into millions of dollars saved for taxpayers. This is right in line with the philosophy we've put into practice from the beginning: maintain tight financial discipline, balance our budget, and lay the groundwork for our economy to move forward. It is reaping benefits now and for years to come."
All three credit rating agencies have rated Missouri's general obligation debt as AAA; Missouri is one of only a few states with this distinction.