Hopkinton maintains AAA rating for $9.5M bond, saves $300K for school project
Courtesy | Google
Hopkinton town hall
While communities struggle with shortfalls caused by the coronavirus, Hopkinton has been able to maintain its AAA credit rating for the recent issue of $9.5 million in bonds to be used for school construction.
"It was gratifying to retain Hopkinton's top-tier AAA bond rating from Standard & Poors, even
in the midst of a national economic crisis,” said Hopkinton Chief Financial Officer Tim O’ Leary in a press release announcing. “The rating agency specifically noted Hopkinton's very strong financial management practices and prudent budget management as key factors supporting our AAA rating."
By maintaining the AAA bond rating, the town is able to obtain funds at the lowest market rate, said Town Manager Norman Khumalo in the release. That rating is estimated to have saved Hopkinton between $250,000 and $320,000 in interest over the life of the loan compared to the next lower ranking.
The borrowed funds will go toward the construction of 16 new classrooms to address school crowding.
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