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ANAHEIM : Bond Rating Hike Will Pay Off for City

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City projects will cost taxpayers less in the future, thanks to an improved bond rating awarded to Anaheim on Thursday.

Moody’s Investor Service in New York, one of the nation’s leading bond-rating services, upgraded the city’s rating to the level of just a handful of California cities. Only Los Angeles and San Diego have better ratings than Anaheim, and Sacramento has an equal rating.

The improved rating gives the Anaheim better credit, allowing the city to borrow at lower interest ratesThe lower rates could reduce annual interest on a $10-million bond by $100,000 to $200,000, said George Ferrone, Anaheim’s finance director.

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“That’s very good news from our standpoint,” Ferrone said, “not only from the prestige standpoint, (but) also in the millions of dollars of interest savings.”

Projects to be funded by bonds include the proposed $95-million sports arena and street improvements connected to planned expansion of Disneyland.

“In looking down the road in terms of our future, it’s certainly a good cushion to have,” said Assistant City Manager James Ruth.

The decision by Moody’s followed a meeting in January where Ferrone asked the company to reconsider the city’s current standing.

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