South Carolina maintains high bond ratings with 3 major agencies

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South Carolina continues to maintain high bond ratings with three major credit rating agencies and is one of 14 states rated in the top category by Moody’s Investors Service.

The state’s triple-A ratings from Moody’s and Fitch Ratings have been reaffirmed, S.C. Treasurer Curtis Loftis announced today. Standard & Poor’s Global Ratings also reaffirmed South Carolina’s AA Plus rating, and all three ratings assigned the state a stable outlook.

“Certainly, the last 10 months have been very challenging for our state, and I am pleased that South Carolina was able to maintain our strong credit ratings,” Loftis said in a news release. “We are fortunate that our leadership has embraced fiscally conservative financial management that has fostered continued economic growth and supported a build-up of our state’s cash reserves. We have weathered the financial impacts of the COVID-19 pandemic better than many states, and these strong credit ratings have enabled us to borrow money less expensively in this time of historically low rates.”

As part of an annual review of the state’s existing bond portfolio, the treasurer’s office staff assessed the potential Net Present Value savings of each issuance, both in terms of dollar amounts and by percentage, and identified several bond series as good candidates for refunding.

During a bond sale Jan. 13, 11 underwriters competed to buy the state’s bonds, according to the release. The issue included refunding of $137.7 million of General Obligation State Economic Development, State Air Carrier Hub Terminal Facilities and State Institution bonds, which generated a debt service Net Present Value savings totaling $14,389,947, or 10.45% of the refunded bonds.

In addition, $74.4 million in project funding for Clemson University, Midlands Technical College, the Citadel and the Medical University of South Carolina was provided through the issuance of General Obligation State Institution Bonds. 

“We are grateful for our financial advisor, Public Resources Advisory Group, and our state partners who participated on these rating calls to tell the positive financial news we have as a state,” Loftis said.