Press Release|Public Finance

KBRA Affirms AAA Rating with Stable Outlook for State of Delaware General Obligation Bonds

22 May 2024   |   New York


KBRA affirms the long-term rating of AAA with a Stable Outlook for the State of Delaware’s (“the State’s”) General Obligation (G.O.) Bonds. The State's long-term G.O. rating remains anchored by constitutionally-mandated financial management policies, conservative budgeting practices, and ongoing fiscal monitoring, which have fostered consistently favorable financial operations and structural balance. The G.O. Bonds are direct obligations of the State of Delaware, to which its full faith and credit are pledged. Payment of principal and interest is made when due, pursuant to legislative appropriation.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Strong financial management policies and procedures. Comprehensive and timely process for revenue forecasting facilitates consistent fiscal monitoring and long-term planning.
  • High levels of financial reserves and strong liquidity position.
  • Low fixed costs and a favorable funded ratio for the State’s primary pension fund.

Credit Challenges

  • Delaware’s net OPEB liability, among the highest of all U.S. states on a per capita basis and as a percentage of personal income and Gross State Product, has the potential to limit future fiscal flexibility if not addressed.
  • The State economic base is somewhat concentrated.
  • The revenue base, while diverse, is weighted toward business taxes, and thus more sensitive to secular economic and financial market downturns compared to states that levy sales taxes.

Rating Sensitivities

For Upgrade

  • Not applicable.

For Downgrade

  • A relaxation of responsible financial management and budgeting practices that causes expenditure demands to consistently outpace revenue growth could contribute to downward rating pressure.

To access rating and relevant documents, click here.



A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004433

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