​ST. PAUL, Minn.: This week, the state of Minnesota sold $1.03 billion in general obligation bonds. Money generated from the sale will support programs and capital improvements as well as refinance existing debt for economic savings.

​“This bond sale provides the capital necessary to fund critical projects throughout our great state. These investments in roads and bridges, water infrastructure, parks and trails, and existing state buildings will strengthen communities across Minnesota,” said Minnesota Management and Budget (MMB) Commissioner Erin Campbell. “We have worked hard to create responsible budgets that maintain our state’s fiscal integrity while also making strategic investments and public policy decisions that will keep Minnesota competitive. We are grateful that the three major rating agencies recently reaffirmed Minnesota’s AAA credit ratings, which help keep borrowing costs low and helps ensure good stewardship of taxpayer resources.”

Under the leadership of Governor Walz, Minnesota has earned AAA bond ratings for five consecutive years. 

Specifics Regarding the Sale 

​The four series of general obligation bonds sold on Sept. 9 include: 

• $646,495,000 General Obligation State Various Purpose Bonds, Series 2026A (4.10% interest) 
• $256,285,000 General Obligation State Trunk Highway Bonds, Series 2026B (4.11% interest) 
• $5,705,000 General Obligation Taxable State Various Purpose Bonds, Series 2026C (4.99% interest)
• ​$121,220,000 General Obligation State Various Purpose Refunding Bonds, Series 2026D (3.34% interest)

Kutak Rock LLP served as bond counsel on the transaction. 

What the Rating Agencies Said

Last month, Moody’s, Fitch and S&P Global reaffirmed the across-the-board AAA bond ratings, marking the fifth consecutive year that all three rating agencies gave Minnesota the very top bond rating. 

In affirming Minnesota’s AAA rating, Fitch credited Minnesota’s AAA rating to, “the state’s healthy economy, low long-term liability burden and strong operating performance supported by prudent reserves and highly effective budget management.” The rating agency noted, “Minnesota’s finances have shown significant resilience through economic downturns, and the state has demonstrated a strong commitment to bolstering its reserves during recoveries,” while stating, “Fitch expects the state’s economic trajectory to support strong revenue growth prospects.”

In affirming Minnesota’s AAA rating, Moody’s Investors Service stated, “reflects Minnesota’s very strong reserves, modest long-term leverage, and the deep fiscal flexibility that will allow it to absorb economic and federal-policy pressures over time. The state’s credit strength rests on structural advantages that we expect to persist: a diverse, high-income economy with above-average labor force participation, low leverage from debt, pensions, and OPEB relative to state medians, and a proven governance framework built on frequent forecasting, automatic reserve deposits, and broad budget-balancing capacity.”

​In affirming Minnesota’s AAA rating, S&P Global stated, “The ‘AAA’ GO rating reflects our view of the state’s robust financial management framework, its actions to manage the out-year structural budget gap and maintain a strong balance sheet, its favorable economic profile and good medium-term performance prospects relative to those of other state peers, and its conservatively managed debt and liability profile with well-funded pensions and limited fixed cost exposure.”