Accomplishing the highest credit rating possible, the city of Highland Park will save approximately $1.18 million over the lifespan of its 2016 bonds thanks to its assessment by Moody’s Investors Service, the leading bond credit specialist.
Having assigned an Aaa rating to the city’s General Obligation Bonds, Series 2016, Moody’s also maintained a Aaa rating on the city’s outstanding general obligation debt.
“The Aaa rating is recognition of the thoughtful policy decisions by the City Council and the prudent financial practices and fiscal management of the city staff,” Highland Park City Manager Ghida Neukirch said. Highland Park is no stranger to the standing, having scored the prestigious Aaa rating for more than 16 years now.
Rating agencies like Moody’s routinely offer credit ratings for entities, such as local governments or corporations, in order to assist investors in choosing the best investments for their portfolios.
Credit ratings are viewed as a viable snapshot to help predict an organization’s future financial health. Similar to the process involving personal credit scores, such a rating can also determine the rate or cost at which an organization is eligible to borrow funds.
Following the sale of the city’s General Obligation Bonds, Series 2016, on Monday, the par value of the city of Highland Park’s bonds was reduced from $9,075,000 to $8,910,000, with a revised true interest rate of 2.5106 percent and interest cost savings of approximately $1.18 million.
Bond proceeds have been designated for construction improvements to the city’s waterworks, sewer systems and streets as well as the Highland Park Public Library and issuing bonds.
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