OLYMPIA – The Office of the State Treasurer (OST) today sold bonds to refinance $1,222,545,000 of previously issued bonds to save the state roughly $18.8 million in present value debt service costs. Upon finalizing today’s sale, OST estimates that its diligent efforts to refinance outstanding debt will have saved taxpayers approximately $551 million in net present value savings since the beginning of 2021.
“Today is another example of how maintaining strong credit ratings and practicing sound financial management puts Washington in a favorable position to reduce costs for taxpayers,” said State Treasurer Mike Pellicciotti. “I am grateful to our team who expertly managed this refinancing process and who continue to demonstrate our commitment to effective stewardship of Washington’s finances.”
The $1,092,550,000 of Motor Vehicle Fuel Tax and Vehicle Related Fees General Obligation Refunding Bonds, Series R-2024C were structured with maturities from 2024 through 2040. Today’s sale locked in a true interest cost of 3.23%. The bonds were sold through a negotiated sale process led by Wells Fargo Securities.
The state’s bonds received the highest rating of Aaa from Moody’s Investors Service, while Fitch and S&P each maintained an impressive AA+ rating of the state, the latter of which revised its outlook to ‘positive’ from ‘stable’ in January.
S&P cited in its ratings report that Washington's credit profile is strengthened by its resilient economy and proactive financial management, which have allowed it to navigate through economic cycles and consistently rebound to its strong position.