Just in time to encourage prospective lenders, the town has received an AA Stable bond rating.“That is just below an AA Plus, and is a very good rating,” said First Selectman Matt Riiska. A “Stable” rating is encouraging to lenders because it means the designation is unlikely to change.
The rating matters to the town right now because town leaders are seeking to refinance the $4 million loan taken out last year for the reconstruction of Maple Avenue and replacement of the Botelle Elementary School roof. Both projects are currently underway. That loan was taken out at 5.87 percent interest.
The selectmen expect to receive bid packages next Tuesday and hope that a new rate of about 2.25 percent can be obtained. If that is achieved, the town would save $50,000 a year, or $1.2 million over the remaining 24 years of the loan.
At the same time, the town has banked the $1.2 million left over after it closed out its defined benefit pension plan. “We’re getting a very good rate on it, so it will stay where it is for now,” Riiska said.