Pennsylvania sells $950M in bonds to Bank of America
Pennsylvania has completed the sale of $950 million in general obligation bonds, Budget Secretary Charles Zogby said this morning.
Bank of America outbid five other companies for the bonds, offering an interest rate of 2.904 percent, the lowest Pennsylvania has ever obtained, Zogby said in a statement.
Proceeds will be used for capital projects, grants for municipal water and sewer projects and Pennsylvania's environmental grant program Growing Greener.
The low rate is due in part to Pennsylvania's comparatively strong credit rating, Zogby said. He noted, however, that three major credit ratings agencies — Fitch Ratings, Moody's Investor Service and Standard & Poor's — all have warned of potential downgrades if Pennsylvania does not bring its pension funding problems under control.