Laserfiche WebLink
<br /> MUNICIPAL BOND RATING MEETINGS <br /> FOR LOCAL GOVERNMENT G.O. BOND ISSUES <br /> The Importance of Bond Ratings: <br /> The importance of a good bond rating for local government <br /> issues cannot be overstated. Ratings affect the eligibility of <br /> bonds for purchase by institutional investors and can influence <br /> the interest rate that a community or district must pay on its <br /> bonds. <br /> Personal appearance before the rating agencies, on bond <br /> issues of approximately one million dollars or more is normally <br /> recommended. Such personal appearance meetings allow the rating <br /> analysts to not only review the financial and statistical material <br /> included in the official statement, but also providès a forum for <br /> discussion of policy, planning and administration of the local <br /> government. These discussions allow the analysts to make an overall <br /> evaluation of the policymaking and government of the issues and the <br /> persons responsible for carrying out the programs of the community <br /> or district. <br /> Since each of the two major rating houses in the country, <br /> Moody's Investors Service and Standard and Poors Corporation, have <br /> different and varied clientele subscribing to their services, it <br /> is recommended that on issues of approximately one million dollars <br /> or more, rating from both these agencies be secured. Receiving a <br /> rating from both Moody's and Standard and Poors will enhance the <br /> marketability of the bonds and thus provide an interest savings to <br /> the issuer. Most municipal underwriters accept the rating of Moody's <br />