The City of Davenport’s bond sales Wednesday benefitted from strong fiscal markers recognized recently by bond rating agencies.
Standard and Poor’s Financial Services increased the City’s bond rating to AA, while Moody’s Investor Service gave the city a positive outlook as it maintains a Aa3 rating. Higher bond ratings indicate overall financial health and management, but more importantly, lower borrowing costs to do more capital projects.
In one series, the City sold $31.62 million at a true interest cost of 2.752 percent to Morgan Stanley & Co., LLC of New York City. Morgan Stanley was among 13 underwriters bidding for the bonds.
A second bond series of $8.275 million at a true interest cost of 3.35 percent to Robert W. Baird & Co., Inc. of Milwaukee, Wisc., one of nine underwriters bidding.
Both rating agencies’ reviews continue to be more positive, reflecting Davenport’s stronger financial footing. The City’s recent reserve/liquidity policy update is seen as strong sign of support and commitment from the Mayor and City Council to good financial practices.