PALMDALE – The city of Palmdale’s recent credit rating increase from A+ to Aa-/stable by Standard & Poor’s Ratings Services, one of the world’s leading providers of independent credit risk research and benchmarks, has already paid dividends.
When the Palmdale City Council voted at its March meeting to unanimously authorize the issuance and sale of lease revenue bonds to refund and refinance outstanding debt, the expected debt service savings was $2.3 million dollars.
The actual savings in Tuesday’s bond sale was $2.8 million, an extra half-million dollars more than originally anticipated a few weeks ago.
“According to our broker, Palmdale’s name is very strong in the bond market due to our increased credit rating and S&P’s very positive review of our fiscal management,” stated Palmdale’s City Manager Jim Purtee. “Our bonds were in high demand—5 to 6 times more requested than we had available—allowing our broker to negotiate greater savings for us.”
“This is more great fiscal news for the city and our residents,” stated Palmdale Mayor Jim Ledford. “Fiscal stewardship is something we take great pride in as an organization. Congratulations to our City Manager and Finance team for working so diligently to keep our City financially strong.”
[Information via news release from the city of Palmdale.]