LOS ANGELES — Montana's general obligation bond ratings were affirmed ahead of plans to refund $29 million the week of July 7.
Montana plans to sell $29 million GO long-range building program refunding bonds, series 2014, according to Fitch Ratings.
Fitch affirmed the bonds at AA-plus, while Standard & Poor's affirmed them at AA. Moody's affirmed Montana GOs at Aa1.
The actions impact approximately $127.8 million in outstanding Montana GO bonds.
"The state's AA-plus GO rating is based on its conservative financial practices, low debt burden and growing economic diversity," according to Fitch Ratings. "Although Montana's large natural resource sector is inherently volatile, the sector's relative strength over the last decade helped to cushion the state during the last recession and has augmented state balances during the recovery."
The full faith, credit and taxing power of the state are pledged to the payment of principal and interest on the GO bonds.
The state benefits from very high trust fund balances and a practice of carrying solid ending budgetary fund balances, helping to offset the cyclicality inherent in its resource-based economy and tax revenue system, according to the Fitch report.
All outlooks are stable.
"The stable outlook reflects our expectation Montana will maintain strong reserves and, given its history of budgetary conservatism, make timely adjustments if unforeseen developments significantly impair structural balance of the state's budget," said Sussan Corson, an S&P analyst.
