Village Garners Strong Bond Rating

Village of Winfield Garners Strong Aa2 Bond Rating

Saves Nearly $130,000 Through Refinancing

 

The Village of Winfield will save $128,962.50 in principal and interest payments through the successful sale of General Obligation Refunding Bonds.  The bonds were originally purchased in 2003 when the Village decided to finance various extensions and improvements to the water and sewer system.   The savings resulted from refinancing the existing 2003 bonds to take advantage of lower interest rates.  This savings reflects the reduction in interest rates on the bonds from the existing rate of 4.13% (2003 Bonds) to 3.51% (new 2011 bonds).

In addition to refunding the 2003 bonds, the Village used this opportunity to talk with the rating agency, Moody’s Investor Services, and received an Aa2 Credit Rating.  This strong credit rating follows a recalibration in the marketplace that improved Winfield’s previous single A1 rating on the original 2003 bond issue.  Bond insurance was not necessary because of the strong underlying rating of the Village bonds based on the financial strength and stability of the Village.  The higher bond rating reflects a better investment with lower risk, garnering more favorable interest rates for Winfield.

“We are always looking for opportunities to save the Village money and watching the bond market is one of our responsibilities” said Finance Director Nadine Alletto.  “Many factors have to align to consider refinancing bonds.  They have and we acted on this cost-saving measure.”

The sale of the bonds came about through collaboration with bond consultant First Trust Portfolios, which researched this opportunity for the Village and handled the bond sale.

* * * * * * *
This complimentary message is being sent to opt-in subscribers who might be interested in its content. If you do not wish to continue receiving these messages, please accept our apologies, and unsubscribe by visiting our website at:
http://www.villageofwinfield.com/list.asp?mode=del

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

Comments are closed.

%d bloggers like this: