CARTERET — Moody’s Investor Service has assigned the much-coveted A1 rating to the borough’s $4.5 million refunding bonds, as of July 18, according to Mayor Dan Reiman’s administration.
“This rating and the Moody’s report reflects our fiscally conservative approach to the local budget and government spending, and the broad range of redevelopment projects under construction in Carteret,” Reiman said. “You would be hard pressed to find another town in the state of New Jersey that has actually reduced its debt during this ongoing financial crisis; yet Carteret has. We are very pleased with this upgraded credit rating, as it is a testament to the hard work of our administration and staff.”
Moody’s Investors Service is a credit rating agency that performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. It is one of the “big three” credit rating agencies and has a 40 percent share of the world market.
The Moody’s report lauds the borough’s “…sound financial position supported by strong management, moderately-sized and expanding tax base…,” and emphasizes the town’s redevelopment efforts as a defining contributor to its A1 standing.
The new bonds, which mature in 2018, are expected to provide a net savings of $231,794 over eight years. They refinance debt originally issued from 1998-2002, during the construction of the Carteret Library and Community Center.
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