Top ratings reflect Town’s solid financial health and strength of local economy
Ratings allow the Town to borrow at the best possible interest rates, saving taxpayers money
Refinancing of Town debt expected to save $784,954
National bond rating agencies Moody’s Investor Service and Standard & Poors this month assigned their highest possible bond ratings, AAA, to the Town of Chapel Hill.
The ratings are key indicators of the Town’s financial strength and will allow the Town to borrow funds at the best possible interest rates, saving taxpayers money.
“Triple A ratings by both agencies reflect the wise stewardship of our financial resources by the Town Council and our staff,” said Town Manager Maurice Jones.
Business Management Director Amy Oland explained that the Town is refunding an outstanding balance on the Town’s taxable general obligation public improvement bonds, originally issued in October 2010. A recent drop in tax-exempt bond rates provided an opportunity for the Town to save money by reducing the net interest cost of debt. It is estimated that the refunding will provide a net savings of $784,954.
As a part of the refunding process, the Town was evaluated by the bond rating agencies, Moody’s Investor Service and Standard & Poors. This rating alerts investors to the quality and stability of the bond. It also defines the strength of the issuer’s finances and future prospects. The Town has consistently maintained the highest possible rating, a triple A, from both bond rating agencies. There are only 12 municipalities in NC that have this top rating level.
Noted in the ratings was the Town of Chapel Hill’s strong financial position with adequate reserves, stable economy and affordable debt profile. The rating reflects the quality of Council leadership reflected by the Town’s solid financial health, management, overall planning and strength of the local economy. The combined ratings allow the Town to borrow at the best possible interest rates, saving taxpayers money.