Skip to primary navigation Skip to main content

Buffalo's credit ratings yield savings

By Jill Terreri

The city borrowed $33 million on Wednesday for major capital projects at rates of less than 2 percent. 

The city's strong credit ratings drew 18 bidders for $33 million in short- and long-term bonds the city sold to finance upgrades at Coca-Cola Field, the Buffalo Zoo and Erie Basin Marina, among other items. In prior years, only six firms had bid on city bonds. 

The city borrowed $25.6 million in long-term bonds at an interest rate of 1.88 percent, and sold $7.4 million in short term notes at a rate of .29 percent. Both interest rates were less than what the comptroller's office expected. 

"Buffalo's rising bond ratings, as well as favorable market conditions have resulted in outstanding interest rates for the city," said Comptroller Mark J.F. Schroeder. 

The city has credit ratings of A+ from Standard & Poor's, A1 from Moody's and A+ from Fitch. 

The long-term bonds, which will mature in nine years, were purchased by Guggenheim Securities, one of 13 bidders. The short-term bonds, which are one-year notes, were purchased by Raymond James. 

The borrowing will cover about two years worth of capital projects, those ready to be bid out this year, and projects from prior years that were not ready in the past. 

tagged

City of Buffalo | city spending | Mark Schroeder
comments powered by Disqus
Advertisement

About Politics Now

Robert J. McCarthy

Robert J. McCarthy

A native of Schenectady, Robert J. McCarthy came to The Buffalo News in 1982 following a six-year stint at the Olean Times Herald. He is a graduate of St. Bonaventure University, and has been covering local, state and national politics since 1992.

rmccarthy@buffnews.com


Tom Precious

Tom Precious

Tom Precious joined The Buffalo News in 1997 as bureau chief at the state Capitol, where he covers everything from statewide politics and state government fiscal affairs to health care, environmental and municipal government matters. Prior to The News, he worked for news outlets in Albany and Washington, DC.

tprecious@buffnews.com


Jill Terreri

Jill Terreri

Jill Terreri is an Amherst native and has covered politics and government in upstate New York since 2003. She joined The Buffalo News in 2012 and covers City Hall.

@jillterreri | jterreri@buffnews.com


Jerry Zremski

Jerry Zremski

Jerry Zremski, The Buffalo News Washington bureau chief, has reported from the nation's capital since 1989 after joining The News as a business reporter in 1984. A graduate of Syracuse University, Zremski is a former Nieman fellow in journalism at Harvard University. In 2007, he served as president of the National Press Club.

@JerryZremski | jzremski@buffnews.com

Subscribe

Advertisement