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Posted on: January 27, 2021

Watertown Assigned AAA Bond Rating and Yesterday’s General Obligation Bond Sale

Standard & Poor’s ( S & P’s ) Rating Services assigned its AAA long-term rating to a General Obligation ( GO ) Bond Sale totaling $ 59.4 million related to constructing a new Hosmer and Cunniff Elementary Schools. At the same time, S & P’s affirmed its SP-1+ short-term rating on Watertown’s existing bond anticipation notes ( BANs ) and AAA long–term rating on the Town’s existing GO debt. These ratings are S & P’s highest ratings.   

 

The rating reflects their opinion of the Town’s :

 

•           Very strong economy

•           Strong management

•           Adequate budgetary performance

•           Very strong budgetary flexibility

•           Very strong liquidity

•           Very strong debt and contingent liability profile

•           Strong institutional framework 

 

Maintaining the AAA Bond rating will be helpful in our continued efforts to provide the highest level of services to the citizens of Watertown while utilizing the taxpayers’ dollars as efficiently as possible.

 

As a follow up to Standard & Poor’s assigning their highest rating of AAA for the Town’s proposed long-term bond, the Town received competitive bids from bond underwriters yesterday for a $ 59,360,000, 20-year General Obligation Bond Issue related to financing the construction of a new Hosmer & Cunniff Elementary Schools. The town received a total of 9 bids on the bonds. 

 

Raymond James & Associates, Inc. was the winning bidder on the bonds with an average interest rate of 1.343 %   

 

Additionally, a Net Premium of $ 7, 215,000 will be applied to the project costs and thereby lowering the Bond issue to $ 52,145,000.  

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