Tuesday, May 16, 2017

City Press Release: “City of Lake Worth Receives A1-Rating from Moody’s for Neighborhood Road Program Bonds.”

For more information and media inquiries contact Ben Kerr, the City’s Communications Specialist at 561-586-1631; email: bkerr@lakeworth.org

“We are LAKE WORTH. A hometown City that is committed to delivering the highest level of customer service through a commitment to integrity, hard work and a friendly attitude. We strive to exceed the expectations of our citizens, our businesses, our elected officials and our fellow employees.”

Press Release:

The City of Lake Worth’s 2017 General Obligation Bonds received an initial underlying rating of A1 from Moody’s Investor Service (the bond credit rating business of Moody’s Corporation) followed, 24 hours later, by a rating of AA− from Standard & Poor’s Financial Services. The General Obligation Bonds are the financial instrument being used to pay for the $40 million Neighborhood Road Program following last November’s successful referendum.
     Moody’s indicates that “the A1 rating reflects the city's above average tax base that continues to recover, adequate reserve and cash positions, low debt burden, and elevated pension liabilities.” Standard and Poor’s indicates that an obligor with an AA rating “has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.” An A1 / AA− rating places the City of Lake Worth’s bonds as upper investment grade with low credit risk which will allow for a lower interest rate to be set upon them at the time of sale (expected June 5th, 2017).
     The $40 million will be drawn down in two installments, to shield the City from excessive interest liability. This, the 2017 series, being valued at $21.2 million will leave $18.8 million to be drawn down as the Neighborhood Road Program progresses.

“The City is very pleased with the results of the credit rating. We feel that the strong investment grade rating, by the two major rating services, positions the City for beneficial pricing of the bonds. I would like to thank my team for their hard work in achieving this excellent initial rating.”
—Director of Finance, Marie Elianor.

“These ratings are a reflection of the hard work and effort put forth by the Mayor, Commissioners and staff to get Lake Worth on the right track. I am very proud of my City!”
—City Manager, Michael Bornstein.