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Buffalo maintains “Straight A” bond ratings
Comptroller Schroeder says continued fiscal discipline is needed to maintain A+ from Fitch, A1 from Moody’s and A from Standard & Poor’s
The City of Buffalo has maintained its bond ratings with the “Big 3” credit rating agencies, receiving an A+ from Fitch Ratings, an A1 from Moody’s Investor Services, and an A from Standard & Poor’s.
“These ratings will help us get the best deal for taxpayers when we go to the bond market later this month,” said Buffalo Comptroller Mark J.F. Schroeder. “Higher ratings mean lower interest rates on our debt, but it is also a reflection of the city’s improved financial condition, as well as the strides Buffalo’s economy has made."
The ratings were in relation to an $8 million bond Schroeder plans to sell in April that will refinance debt from 2004, resulting in a savings of more than a half million dollars in interest costs for taxpayers. Moody’s also rated the $17.8 million in Bond Anticipation Notes that will fund the city’s capital projects, giving the city a MIG1 rating, the highest possible rating for that type of borrowing.
“The rating agencies have taken notice of the momentum at the Buffalo Niagara Medical Campus and the waterfront, as well as the city’s strong cash position,” said Schroeder. “However, they have also warned against continuing to tap into reserves to balance the budget, or incurring too much debt. So it is clear that continued fiscal discipline is needed in order to maintain these ratings in the future.”
Mayor Byron W. Brown also agreed on the need for prudent financial management in order to keep Buffalo’s bond ratings in the “A” category.
“For seven years my administration has demonstrated strong fiscal discipline, conservative budgeting, and sound management practices that have led to lower taxes and record economic development activity,” said Brown. “I’m very pleased that the major credit rating agencies have recognized Buffalo’s progress and continued our positive credit ratings.”
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Photos by Angel Art LTP, compliments of the Greater Buffalo Convention and Visitors Bureau. Additional photos by Adrian Roselli, compliments of Algonquin Studios