Despite its economic woes including the nation's second highest unemployment rate, Treasurer Kate Marshall said Nevada has maintained a Double-A rating for its bonds.
She said the three major ratings services, Standard & Poors, Moody's and Fitch, re-evaluated the state because the treasurer's office is preparing to sell $142 million worth of new bonds.
Since the state's rating determines the interest it must pay on bonds, Marshall said a major downgrade could cost Nevada millions over the 20-year life of most bonds.
According to notifications Marshall's office received late Tuesday and Wednesday, S&P maintained Nevada at Double-A Plus and Moody's kept the state at Double-A. That is in contrast to other states where bond ratings have been downgraded.
Fitch, the smallest of the three rating services, dropped Nevada a notch, but that puts the state at Double-A in their eyes.
"We're still Double-A," she said.
Marshall said not only her office but other agencies and representatives of major industries in Nevada "pulled out all the guns we have" to protect the ratings.
She and her staff were joined by Director of Administration Andrew Clinger, economists from his office and the Department of Employment, Training and Rehabilitation, officials from PERS and the state benefits program, as well as representatives from gaming, the retail industry, real estate, utilities and banks.
Marshall said the presentations convinced ratings experts Nevada is fiscally sound because it is. She said sales of existing homes are up 52 percent year to date and the median price of a new home has risen two months in a row.
"That tells us the housing market appears to be stabilizing," she said.
She said gaming operators are adapting their marketing to recover and increase international business with British Airways adding routes to make it easier for Asian, European and Middle Eastern tourists to get to Nevada.
Marshall said presentations showed that despite job losses, categories including trade, transportation, professional business and leisure/hospitality are still well ahead of the total jobs they had a decade ago.
She said the rating agencies also noted that Nevada is well managed financially and, even if no more revenue comes in, the bond redemption account has enough money to pay bond payments for 11 months.
"We have had very active, responsive financial management in the face of economic decline," she said. "That helped convince them."
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