City Receives Positive Financial Rating Text Size
Sandra Smith, City Treasurer, received competitive bids from bond underwriters on Thursday, February 16, 2017 for a $5,035,000, 10-year refunding bond issue. SunTrust Robinson Humphrey was the winning bidder on the Bonds with an average interest rate of 2.068%. The City received a total of 5 bids on Bonds. Bonds will be used to refund a portion of the City’s July 15, 2007 bond issue.
The refunding bonds will generate total savings of $531,602 over the remaining life of the bonds.
Prior to the sale Standard & Poor’s Ratings Services, a municipal credit rating agency, affirmed its ‘A+’ underlying rating on the City’s long-term debt and assigned a ‘AA’ rating to the Bonds, which are enhanced by the Commonwealth of Massachusetts’ State Aid Intercept Qualified Bond Program.
These ratings will allow the City to borrow at better interest rates than in the past. This means important projects, such as the replacement of the Pouliot Pool, will be less expensive as the long-term debt is paid off.
Standard & Poor’s cited the City’s strong budgetary flexibility, strong budgetary performance, strong liquidity and strong institutional framework as positive credit factors.
“This is a significant financial achievement for the City of Holyoke” commented Mayor Alex Morse, “Not only because of real savings for taxpayers of Holyoke but also because of the recognition by the financial community of our strong financial management and budgetary performance”.
“I want to thank Treasurer Sandra Smith, Acting Auditor Bellmay Schmidt and all the members of the City’s financial team for their leadership and assistance in ensuring our financial health.” Mayor Morse added.
The bids for the Bonds were accepted at the offices of the City’s Financial Advisor, FirstSouthwest, a Division of Hilltop Securities, at 54 Canal Street in Boston, Massachusetts.
Posted on March 28, 2017 by cityadmin