When it comes to good credit, Colorado's got it. That was the good news from State Treasurer Dave Young Thursday afternoon, as his office gets ready to sell notes to borrow $1.1 billion for K-12 schools and state operations.
Moody’s and Standard & Poor's reaffirmed that Colorado is a very good bet for investors. The better the credit rating, the lower the interest for taxpayers.
About $410 million in notes will go to the Education Tax Revenue Anticipation Notes, which allows qualifying school districts to get temporary help balancing their cash flow.
The state plans to sell $600 million worth of General Tax Revenue Anticipation notes to settle cash flow for the general fund budget in the next fiscal year.
“The Treasury’s ability to provide interest-free loans to Colorado school districts has always been a critical tool in alleviating temporary cash flow deficits," Young said in a statement. "This is especially true now, as we experience an unprecedented economic crisis.
“I am pleased with the continuation of our positive credit rating, and confident in our ability to move through the current challenges without putting taxpayer dollars at risk.”
Both credit rating agencies noted the state has been steady, financially, through these "turbulent times," as Young's office put it.
Moody’s and S&P each gave their highest short term ratings, and Moody’s reaffirmed its Aa1 credit rating for the state as a whole, reflective of Colorado's strong economic performance before the pandemic with relatively low debt levels.