CITY’S CREDIT RATING REMAINS HIGH WHILE SUCCESSFULLY MARKETING $45 MILLION IN BONDS
(3/18/2008) NEW HAVEN- Despite a troubled world financial market and difficult fiscal situations for most cities, New Haven learned this week that it has maintained high scores amongst the three main credit-rating agencies. The city's ratings were affirmed at A3 by Moody's, and A- by both Standard & Poor’s and Fitch.
“Our credit ratings and success in the Finance Department are the result of careful and strategic work by our Office of Management and Budget and the City’s department heads,” said Mayor John DeStefano, Jr. “The City’s fiscal health is a priority. We’re proud of these recent accomplishments, particularly in difficult financial times. These are standards that we’ve set, we will uphold and that we will even strive to increase.”
Further, just last Thursday, the City sold $45 million in bonds, a sign of significant financial strength. “Given what is going on worldwide in the financial and credit markets this was a very encouraging and significant achievement,” said Lawrence Rusconi, the City’s Director of Management and Budget. “It is an affirmation of investor confidence in the City as well as how well we manage.”
Proceeds from the $45 million bond sale will help to fund a number of projects throughout the City including the following: Bridge Repairs; Park and Playground Improvements; Library Repairs and Renovation; Sidewalk Replacements; Computer Upgrades; Energy Conservation in City Buildings; Economic development and site improvement projects; School Building and Life Safety Improvements and Street Repairs.
Regarding last week’s bond sale, “The City received a competitive rate of 4.32% which is very good in this market for an A3/A- GO credit. To put it in perspective, last year's winning bid was a 4.12% but interest rates were 30 to 50 basis points lower. In both instances we received 4 bids,” said Malik K. Muhammad, the City’s Financial Advisor.
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