The long-term rating for the State of Delaware’s (the “State’s”) General Obligation (G.O.) Bonds is underpinned by the State’s conservative financial management policies and procedures including a statutory requirement for consensus revenue estimates; formal process for updating revenue and expenditure estimates five times annually; a Constitutional appropriations limit at 98% of budgeted receipts; and, the utilization of multi-year budget forecasts and benchmark appropriation forecasts aimed at keeping budget growth in line with that of the underlying economy. Also reflected in the rating are the State’s moderate debt and additional continuing obligations profile, large financial reserves and liquidity, and diverse, growing economy.
G.O. bonds are direct obligations of the State to which its full faith and credit is pledged. Payment of principal and interest is made when due, pursuant to legislative appropriation. In the unlikely event that the State fails to make…
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