Refinancing Debt Certificates to Save Barrington $570,000
A recent Moody's Investor Services rating allowed the village to refinance General Obligation Debt Certificates.
The village of Barrington will save $577,748 over the next 11 years after refinancing outstanding General Obligation Debt Certificates.
The average interest rate on the $4,590,000 in refinanced Debt Certificates was lowered from 4.148 percent to 2.742 percent, thanks to an exemplary rating by Moody’s Investor Services. The village received a rating of Aa1, just one step below the highest rating of Aaa.
“This is an incredibly strong rating for a smaller non-home rule municipality in Illinois and demonstrates the village of Barrington’s strong credit profile,” said Eric Anderson of BMO Capital Markets.
In a letter written by Moody’s, the company noted the Aa1 rating is a reflection of great financial management.
“...strong credit fundamentals inherent in the village’s overall credit profile, including: solid financial operations with healthy operating reserves and prudent fiscal management; a modestly-sized residential base featuring above average income levels; and a manageable debt profile,” the letter read.
Village President Karen Darch echoed Moody’s notions regarding the staff’s financial responsibility.
“In the last three years, both Standard & Poor’s and Moody’s have recognized the village’s solid financial management…These strong ratings have allowed the village to refinance outstanding debt and reduce its interest cost by $1,113,400. Much of this savings was passed on to our residents through lower property taxes and lower water & sewer utility rates,” Darch said.