Delaware Receives Highest Bond Ratings

DOVER - Governor Matt Meyer announced today that the State of Delaware will sell $446 million of bonds on May 13, 2026, after once again receiving the highest possible AAA/Aaa ratings from all the nation's leading rating services.

Delaware's bonds have now received unanimous top ratings from Fitch, Moody's, and S&P Global Ratings for 26 years consecutively. After the State received numerous competitive bids for this bond sale on April 28, 2026, it was ultimately awarded to Morgan Stanley at a rate of 3.41% for 20 years to finance new capital projects. A separate series was awarded to Bank of America at a rate of 3.52%, which will pay off certain existing debt and generate $4.6 million of debt service savings over the next 8 years.

"Thanks to the work of our Department of Finance, Delaware continues to build upon a strong financial foundation, allowing us to deliver more for our communities while keeping services efficient and affordable." said Governor Meyer.

Rating agencies consider factors including the State's financial performance and management, overall debt load, and approach to long-term issues ranging from financial obligations to economic development trends. The highest ratings, AAA/Aaa, are granted to the states that demonstrate the most diligent fiscal oversight and most stable credit outlook. The higher a state's credit rating, the lower its cost to repay bonds.

Proceeds from the bond sale will finance new projects including public school construction throughout the state, projects at the University of Delaware and Delaware State University, continue the restoration and expansion of the historic Custom House in Wilmington, as well as library and other cultural projects throughout the State.

The agencies' rating reports all emphasized the importance of Delaware's budget process and effective financial management. Moody's noted "strong reserves and structural governance features" among the factors considered in assigning their rating. Fitch's analysis highlighted strong reserves and revenue growth prospects", and S&P Global further noted that the Governor's proposed 2027 budget "continues to build on these strengths". All rating agencies currently rating Delaware's General Obligation Bonds have now reaffirmed Delaware's outlook as "stable," referencing the state's strong reserves and ongoing economic growth.

Rating reports can be found at the Delaware Department of Finance's website.