New Orleans — Standard & Poor’s Rating Service has assigned a credit rating of A, and Moody’s a credit rating of A3 to New Orleans’ $200 million bond sale scheduled for this week.
The ratings, which mean the bonds will have interest rates favorable to the city, reflect an improving financial condition at City Hall.
S&P said its rating was due to the city’s growing property tax base, a pledge of revenue to repay the bonds and the creation of a debt service reserve fund.
Moody’s said it, too, assigned its rating because of the growing tax base and the debt service reserve fund but also because of the revenue being pledged toward that debt.
Additionally, Fitch Ratings assigned a rating of A- to the city’s unlimited general obligation bonds and gave the limited tax general obligation bonds a BBB+.
“These ratings are critical for the city,” Deputy Mayor and Chief Administrative Officer Andy Kopplin said in a news release. “We will be able to obtain lower interest rates on these financing transactions, which in turn will save residents money.”
The bond sale scheduled for this week is expected to reduce the city’s debt for outstanding pension obligation bonds from $19 million that was budgeted in 2012. The refinanced bonds will mature in 2030. That’s the same year the original pension bonds would have matured.
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