Edina, Minn., July 7, 2023 – The City of Edina recently had its longstanding triple-A bond ratings reaffirmed by independent bond-rating agencies Moody’s Investors Service and S&P Global Ratings ahead of a June 20 sale of General Obligation Bonds to finance street reconstruction and utility improvement projects.
Only awarded to a small percentage of cities, the triple-A rating is the highest rating that can be achieved and helps ensure the City’s debt is issued with the lowest possible interest expense and cost to taxpayers.
“Before going to the market to issue bonds, the City works with rating agencies to provide us a credit rating, which allows us to secure a good interest rate. We are very proud and fortunate to have had a triple-A rating for 20 years,” said Finance Director Alisha McAndrews.
Moody’s Investors Service first gave Edina the triple-A rating in 2000 and S&P in 2003. The ratings demonstrate confidence in the City of Edina’s ability to repay its debt.
Moody’s cites Edina’s “growing, affluent tax base in the Minneapolis-St. Paul metropolitan area, robust financial position and low fixed costs” in its rationale for the issuer rating. When evaluating key credit metrics, the S&P report lists Edina as “very strong” in the areas of economy, budgetary flexibility, liquidity and management.
Both evaluations take the City’s future debt plans into consideration.
At the approval of the Edina City Council, the City typically issues General Obligation Bonds every year. The bonds in the June 20 sale – named Series 2023A – will provide $11.135 million in funding for the following projects:
- Morningside C roadway reconstruction
- Sanitary Sewer Lift Stations 6 and 3 and utility work on Brook Drive
Six broker-dealer firms bid on the purchase of the City’s bonds during a competitive June 20 bond sale. There was a narrow spread of less than 0.08% between the lowest and highest bid. The lowest bidder, Piper Sandler & Co., was awarded the sale of the bonds.
The City will close on the bonds July 13 at a final interest rate of 3.0124%.
For more information regarding the City’s bonds or ratings, contact McAndrews at 952-826-0419 or [email protected].