AAA RATING: City issues $15.4M in bonds for new projects

Staff photo by Adam Urquhart Nashua officials capitalized on the city’s AAA bond rating, the highest possible rating, last week by issuing $15.4 million worth of new bonds. The resulting funds will be used for a variety of projects, including $2 million for six new garbage trucks.

NASHUA – A rating of AAA from Standard & Poor’s Financial Services helped city leaders issue $15.4 million worth of bonds last week at an interest rate of 2.85 percent.

As part of that $15.4 million, Nashua plans to spend $2 million for six garbage trucks, which is a cost of $333,333 per vehicle.

“We consider Nashua’s economy very strong,” S&P’s report on the city states. “Nashua serves as a key commercial and industrial center for the state. It also has a role as a dominant regional hub for retail trade due to New Hampshire’s lack of a statewide sales tax and its close proximity to several Massachusetts communities.”

The AAA rating is the highest possible. S&P cited the city’s strong budgetary performance, strong city management and a strong economy.

Fitch Ratings Inc. also gives Nashua a score of AAA.

“Nashua is one of only a few communities in the state that holds two AAA ratings both from S&P and Fitch,” City Treasurer David Fredette said.

Prior to 2017, the city had a AA+ bond rating from S&P, while on the other hand, Fitch Ratings has assigned a AAA bond rating to Nashua every year since 2010.

“A strong bond rating reflects the city of Nashua’s sound financial management practices and the overall good health of our economy,” Mayor Jim Donchess said. “It allows the city to sell bonds and borrow at reduced rates, which will positively affect all of Nashua taxpayers.”

Adam Urquhart can be reached at 594-1206 or aurquhart@nashuatelegraph.com.

MORE INFORMATION

Most of the $15.4 million worth of bonds Nashua sold last week will fund these projects:

 $7.5 million for street paving

 $2.5 million for sewer maintenance

 $2 million for six garbage trucks

 $1.2 million for roof repairs at Ledge Street Elementary School and

Fairgrounds Middle School