New Bedford's credit rating gets a boost

January 23, 2014 2:29 PM
STEVE URBON
surbon@s-t.com
NEW BEDFORD — The city’s bond rating has been raised to AA- by Standard & Poors Rating Services, the highest it has been since at least 1970, Mayor Jon Mitchell announced today.
The change has already saved the city money: $10 million in general obligation bonds were sold today at an interest rate lower than had been expected. That will save the city $300,000 over the lifetime of the debt, said the mayor’s office.
The city also will save $1 million in financing costs for its $45 million capital improvement plan.
The report observed that the city has a strong financial team, conservative spending approach, and a promising future in the offshore wind industry at South Terminal.
Mayor Mitchell called the rating upgrade as “a vote of confidence in our administration’s approach to financial management and the ability of our finance team to execute our fiscal strategy. The verdict of Wall Street is clear. New Bedford is a city headed in the right direction.”
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