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Posted on: September 13, 2018

Debt Refinancing Affirms Roselle's Strong Financial Position

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Roselle's AA+ bond rating was reaffirmed by Standard & Poor's during a recent "rating call" that was triggered by the refinancing of some of the Village's debt earlier this month. The AA+ rating is the second highest category that can be achieved and indicates that Roselle's capacity to meet its financial commitment on debt is very strong. This strong rating allows the Village to borrow at lower interest rates and reflects the Village's commitment to financial stability.

The refinancing that triggered the rating call will save the Village over $125,000 in interest charges over the life of the debt. According to Finance Director Tom Dahl, the Village issued $2.315 million in alternate revenue bonds while not extending the amount of time necessary to pay off the debt, which will be paid off in 2029. The debt was originally incurred for the purpose of various street improvements, including Foster Avenue and were part of the American Recovery and Reinvestment Act Build America Bonds. The new bonds were sold on September 5, with a savings yield of 4.14 percent. 

 "This was an excellent opportunity for the Village to save money," said Roselle Mayor Andy Maglio. "The refinancing of this portion of our debt is part of an ongoing effort for us to exercise fiscal responsibility." 

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