Bond-rating agencies give positive ratings for Municipality of Anchorage
Two of the largest bond rating agencies in the United States released ratings for the Municipality of Anchorage, according to a release from the city, which stated the outlook is positive.
Fitch Ratings gave an AA+ to the municipality for general obligation bonds and affirmed AA for the Certificates of Participation and AA- for Anchorage Convention Center revenue refunding bonds.
The company also said the municipality's outlook is stable, which may surprise Alaskans given the recent state budget cuts.
Another bond rating agency, Standard & Poor's ratings were also positive, giving Anchorage the same rating from last year of AAA.
"With the recent downgrade of both the State of Alaska's and the University of Alaska's bond ratings, the reaffirmation of the MOA's positive bond rating demonstrates that doing things the Anchorage way brings strong economic opportunities to investors and residents," said Mayor Ethan Berkowitz in the release. "Despite the tumult at the State level, our city continues to inspire confidence in professional and individual investors — that's what it means to be open for business."
On Sept. 10, the municipality issued refunding bonds worth $44 million. The Wednesday release said the strong bond ratings and low-interest rates will save taxpayers $5.1 million in future debt service over the next 10 years.
The city says it sold $37 million for voter-approved road, drainage, parks and recreation, and other capital projects in the municipality. The Anchorage School District educational capital improvement bonds sold for $41 million.
Each year the municipality retires bonds as it issues new ones for upcoming projects, the release states. The cost of borrowing money has gone down over the years, with the 2019 tax-exempt municipal rates at approximately 1.5% lower for a 20-year bond as opposed to 10 months ago.
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