NORTHAMPTON — Standard and Poor’s Global Ratings recently affirmed the city’s AAA bond rating, and the mayor says that bodes well for borrowing.
“As part of our capital program this year we received borrowing authorization on several different projects,” Mayor David Narkewicz said of the financial institution’s report issued last month. “We were going out to bond, so that’s what precipitated S&P’s updated rating.”
Narkewicz said the updated rating reflects well on the city’s economy and on progress he’s made in his six years as mayor.
The high rating comes because of the city’s “very strong economy,” “very strong management,” and “strong budgetary performance.”
“We’ve been able over time to slowly raise our bond rating,” he said. “It affirms the work we’re doing is successful.”
The strong rating allows taxpayers in the city to get more for their money, Narkewicz, as the city enjoys a lower interest rate.
“It allows us to stretch our capital dollars farther, because we’re able to get this lower interest rate,” he said. “It definitely makes a difference not only in annual payments, but also over the life of the loan.”
Amanda Drane can be contacted at adrane@gazettenet.com.