Missouri Refinances Bonds - Expected to Save $44 Million
JEFFERSON CITY - Missouri's AAA credit rating has allowed the state to refinance some of its outstanding debt. The state plans to save $44 million by refinancing the debt at lower interest rates. On Tuesday, the Board of Public Buildings and the Board of Fund Commissioners gave preliminary authorization for the refinancing.
For Fiscal Year 2013 - which started Sunday - the Board of Public Buildings estimated a savings of $20.6 million and the Board of Fund Commissioners expects to save $23.3 million. These savings were written into the budget passed by the legislature and signed by the governor.
"With these savings, we are again seeing the benefits of Missouri earning the highest marks from the top credit rating agencies," Gov. Jay 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."
The big three credit rating agencies - Standard & Poor's, Moody's Investor Service, and Fitch Ratings - all rate Missouri's geveral obligation debt as AAA, the highest possible rating.