MARLBOROUGH PATCH—From the City of Marlborough: Mayor Arthur Vigeant announced that the city was rated AA+ by S+P Global Ratings for long-term debt, an indication that Marlborough’s municipal management and finances are determined to be very strong. Marlborough also secured the SP-1+ rating for its short-term bond anticipation notes, which is the highest short-term rating attainable.
After being rated strongly by S+P Global Ratings, the city sold $14,390,000 in General Obligation Bonds, which included a $1.9 million bond premium, and $21,200,000 in Bond Anticipation Notes. These debt offerings attracted strong interest from financial institutions and allowed the city to borrow at lower than projected interest rates.
Mayor Arthur Vigeant said, “S+P Global Ratings took a close look at our municipal management, finances, and financial policies and rated us very strong across the board. Their high marks for Marlborough means we can reduce our long-term borrowing costs and generate savings for our residents. I appreciate the hard work of our financial team and City Councilors in helping us achieve these high marks.”
Comptroller Brian Doheny said, “I am very happy with the results of these two offerings. We had strong interest from a number of banks and secured very competitive interest rates even as we are seeing interest rates rise pretty quickly across the country. The long-term bond offering funded a variety of critical improvements, including new roads and water/sewer infrastructure. The short-term notes will fund additional projects and the first year of our new school project.”
The S+P Ratings Report rated the city as strong or very strong in all categories, identifying its economy, management, budgetary flexibility, and liquidity as very strong and concluded in part:
“The stable outlook reflects our view of Marlborough’s overall very strong economy, which benefits from its participation in the broad and diverse Boston-Cambridge-Newton MSA. It also reflects our expectation that the city’s very strong financial practices and policies, which contribute to generally stable and predictable budgetary performance, which will likely support its very strong budgetary flexibility and liquidity.”
The City received competitive bids from bond and note underwriters on Tuesday, June 5, 2018, for a $14,390,000 20-year general obligation bond issue and a $21,200,000 1-year bond anticipation note issue. FTN Financial Capital Markets was the winning bidder on the Bonds with an average interest rate of 2.63% and Jefferies LLC was the winning bidder on the Notes with a net interest cost of 1.68%. The City received a total of 10 bids on the Bonds and 7 bids on the Notes. The Bond and Note proceeds finance various capital improvement projects, including sewer, street, and water system improvements, construction of outdoor recreation facilities, and part of the new school construction project.
This article originally appeared here.