City’s favorable credit rating spurs bond sale
Thursday, June 16, 2011
The city of Vancouver’s favorable AA/Aa3 credit rating has been reaffirmed by both Standard & Poor’s and Moody’s rating reports, allowing the city to sell $10.5 million in bonds for its waterfront access project, the city said in a bulletin Wednesday.
The good rating was important to have in order to sell the Limited Tax General Obligation bonds for the $44 million waterfront access project. The bond sale took place June 8. The 25-year bond has an average interest rate of 3.93 percent, which reduces the city’s overall cost of borrowing, the city said. In past bond sales, average interest rates have ranged from 4.2 to 4.5 percent.
The bonds will be used to build tunnels, realign the railroad and create street improvements in order to restore a direct connection between downtown and the Columbia River waterfront. The proceeds from the bond issue allow the city to provide local matches for state and federal grants.