SANTA FE – Santa Fe recently received AA+/AA ratings from Fitch Ratings and S&P Global for a Subordinated Lien GRT Revenue Refinancing Bond, while all other bonds have been affirmed with the same ratings.
The New Mexico’s city reported that the rating agencies is strong economic fundamentals and good budget management during the pandemic.
Just last November 16, the city successfully sold US$13.59 billion of 2021 subordinated lien TRB revenue refinancing bonds on the open market. RBC Capital Markets and Baird led the city’s bond sale as underwriters.
Separately, it was disclosed that by refunding the 2010 Railyard B infrastructure development bond and 2012 CIP GRT revenue bond with the new 2021 subordinated lien GRT revenue refunding bond, the city would save more than US$1.3 million in interest expense over the next five years.
“The bond ratings we just received will continue to benefit Santa Fe residents. When we can repay our bonds at lower interest rates, we save taxpayer money and put those dollars toward meeting the needs of our community. It’s good financial management and it’s good for our city,” said Alan Webber, the city’s mayor.
Finance Director Mary McCoy said the bond rating was excellent news, while the recognition for good fiscal management practices during the Covid-19 pandemic strengthens the city’s financial health by successfully refinancing outstanding debt and achieving more than US$1.3 million in savings for the city.
She noted that the savings from the refinancing will allow Santa Fe to continue to invest in programs that will enhance its future.
In its credit opinion, S&P Global rated the city’s economic fundamentals as “strong,” noting that “new economic development continues with restaurants, retail and commercial establishments. Tourism and the film industry are recovering after a slowdown due to the pandemic.”
Source: MEXICO-NOW Staff