KROC-AM logo
Get our free mobile app

St Paul (KROC AM News) - The Minnesota state government just sold nearly $900-million in bonds at interest rates under 2-percent.

State officials say the proceeds from the sale will pay for “capital construction projects such as asset preservation, higher education facilities, highway projects, and economic and redevelopment projects previously authorized.”

The low rates were the result of the state’s high credit rating and strong demand for the bonds by investors.

“Minnesota continues to manage our debt well, saving taxpayer dollars,” said Minnesota Management and Budget Commissioner Jim Schowalter. “As a AAA-rated state, we received historically low interest rates that allow us to make smart investments in Minnesota, reduce our cost of borrowing, and nimbly respond to challenges created by the COVID-19 pandemic."

Schowalter says before the bond sales, Fitch and Standard & Poor’s reaffirmed Minnesota’s AAA credit ratings and Moody’s reaffirmed the Aa1 rating reflecting the state’s diverse economy, history of strong financial results, strong governmental framework, and moderate debt levels. A state’s credit ratings play an important role in obtaining low interest rates for a bond sale. AAA is the highest credit rating awarded by the agencies.

News update:  Another deadly motorcycle accident in Minnesota.

LOOK: Here is the richest town in each state

Just saying the names of these towns immediately conjures up images of grand mansions, luxury cars, and ritzy restaurants. Read on to see which town in your home state took the title of the richest location and which place had the highest median income in the country. Who knows—your hometown might even be on this list.


More From KROC-AM