Everett Has Aa3 Rating:Refinancing of Old Debt with New Rating Will Save the City Money

December 20, 2012
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On Monday Mayor Carlo DeMaria officially announced the news that the city’s bond rating has been maintained as Aa3, after a re-evaluation by the investment firm Moody’s Investor Services.

The city’s financial consultant Tony Rosselli actually let the news slip at last week’s Board of Aldermen meeting, during a discussion about the city’s water and sewer rates, but the official word from the Mayor’s office signals that the city has received official word of the rating from Moody’s.

Given the difficult financial climate of the last four years, the news that the city has been able to maintain its excellent bond rating is a good sign of its fiscal health and according to the Mayor’s office will also result in savings for the city on some current and future borrowing.

According to a statement from Mayor DeMaria’s office, “the bond rating was recently re-evaluated in order to refinance some old bonds for more favorable interest rates. As a result, significant savings are projected. For example, the City will save approximately $150,000 over the next five years on just one of the bonds that was refinanced.”

Moody’s stated that the city’s bond rating is a result of “the City’s satisfactory financial position, which is bolstered by its healthy reserve levels.”

Moody’s also noted that the city’s excess levy capacity, location close to Boston and the recent transition to a water/sewer enterprise fund with strict spending controls, also figured in the decision.

“Maintaining this impressive bond rating is a clear indication of our commitment to fiscal responsibility,” said DeMaria. “Most of our neighboring cities are not rated as well, so we should take pride in this achievement.”