Press Release|Public Finance
KBRA Affirms AAA Rating for State of Delaware General Obligation Bonds
5 May 2026 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the State of Delaware's General Obligation Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Strong financial management policies and procedures, including comprehensive and timely process for revenue forecasting, facilitate consistent fiscal monitoring and long-term planning.
- Large reserves and strong liquidity support financial flexibility.
Credit Challenges
- The State’s revenue base, while diverse, is weighted toward business taxes, and thus more sensitive to secular economic and financial market downturns than many other states.
- Real GSP growth lags that of the Nation.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Reduction in financial reserves and liquidity to a level no longer commensurate with the rating level.
- Secular decline in status as a dominant center for business incorporations leading to significant decline in the State’s employment and tax base.
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