The Delaware Department of Transportation said it completed a successful Delaware Transportation Authority bond sale on April 26, providing $75 million in funding for capital projects at a true interest cost of 2.67 percent.
Transportation Secretary Jennifer Cohan said: “The rating agencies have given us high marks for a sound and well-managed financial plan. This latest bond sale comes at an opportune time because the interest rates to pay back this money are favorable.”
The announcement also said the bond sale “affirmed the importance of the excellent bond ratings the department has received from [debt rating firms] Standard & Poor's and Moody's.” The bonds were affirmed as AA+ by Standard & Poor's, and Aa2 rating by Moody's Investors Services, DelDOT said.
DelDOT said those transportation system senior revenue bonds were issued to provide funds for DelDOT's capital transportation program, while it will use another $41 million of bond proceeds to refund outstanding higher-cost bonds and save the department more than $3.2 million in scheduled debt-service payments.
DelDOT said both rating agencies also assessed a “stable” outlook for the state's transportation system revenue bonds, based on the strength and diversity of pledged revenues and limited anticipated future borrowing, which suggests that coverage of anticipated debt service will remain satisfactory.
They also cited Delaware's strong commitment to its transportation program, which includes the state's willingness to enhance transportation-related revenues statewide to support capital and infrastructure investments.
DelDOT said the solid ratings also reflect the diverse mix of pledged revenues that has contributed to revenue stability even during poor economic conditions, the Transportation Authority's strong historical and projected debt-service coverage, rapid amortization of debt outstanding and a clearly articulated capital transportation plan.