Lupinacci Touts $275,000 In Savings Thanks To Renewed AAA Bond Rating

Filed under: Events,Government,Huntington,News |

Supervisor Chad A. Lupinacci credits Huntington’s recently renewed  AAA bond rating by Standard & Poor’s and Moody’s Investors Services for the Town’s recent refinancing move that saved taxpayers over $275,000.

 

“The agencies’ analysis and recognition of Huntington’s fiscal practices with the AAA stable rating allowed the Town to refinance outstanding bonds at a significantly lower rate,” said Supervisor Lupinacci. “This move saved taxpayers at least $275,000 over the next six years.”

 

The bond sale occurred on September 27, 2018. The Town received a total of six bids by underwriters and the winning bidder was Raymond James with a True Interest Rate of 2.12%, retiring the original bonds yielding approximately 3.7%. The timing of the sale was fortunate as interest rates have risen since the day the rates were locked in.

 

In addition, the Town sold $10,500,000 in bonds to provide original funding for various public improvements including the James Conte Community Center, Halesite Park bulkhead reconstruction, road improvements and other projects as set forth in the Town’s Capital Plan. The Town received seven bids and the winning bidder was UBS Financial Services. The AAA bond rating allowed the Town to finance this issue at a True Interest Rate of 2.88% for fifteen years.

 

Standard & Poor’s and Moody’s Investors Services maintained the Town of Huntington’s AAA bond rating in reports issued on September 21, 2018. Huntington is one of the few Towns rated by both agencies.

 

“The stable outlook reflects S&P Global Ratings’ opinion of Huntington’s very strong economy,” the S&P Global Ratings’ report stated, citing their reasoning as to why they expect to maintain Huntington’s AAA rating for the next two years: “We believe strong management practices and policies underpin Huntington’s commitment to maintaining structural balance and strong available reserves, providing additional stability.”

 

Moody’s Investors Service issued Huntington’s AAA-rating, citing the Town’s “improved financial position,” stating the “town’s debt burden remains below the median for similarly rated credits,” and “the town maintains a low pension liability.” The report issued a stable outlook for Huntington due to its “expectation of continued economic stability” and “projected financial stability given the town’s intent to maintain reserves at current levels.”


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