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Nashua Receives Fifth Straight AAA Bond Rating From S&P

AAA is the highest rating possible and allowed the city to close a bond sale with competitive rates.

NASHUA, NH —Nashua Mayor Jim Donchess has revealed that Standard & Poor's (S&P) Global Ratings has reaffirmed the City of Nashua's AAA bond rating, which is the highest rating possible.


This is the fifth straight year the city has received a AAA rating.


The city also announced that thanks to the rating, it was able to close a recent bond sale that was "highly competitive."


According to the city, the $52.3 million tax-exempt general obligation bond offering received seven bids. The winning bidder was Jefferies LLC, which had an average interest rate of 3.55 percent, the city said.


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

In fact, John Griffin, Nashua's chief financial officer/treasurer/tax collector, said the city is one of just a few communities in New Hampshire that holds AAA ratings from both S&P and Fitch.


In its assessment of the city's finances, S&P suggested that the rating is "supported by Nashua's steady economic base and history of outperforming its budget due to conservative budget assumptions and careful year-end monitoring."


"This," S&P continued, "has led to the maintenance of very strong available reserves since 2015."


As part of its credit overview, S&P noted that Nashua has:

  • A healthy economy with access to the Manchester MSA

  • Has strong financial management assessment supported by strong institutional framework

  • Shows consistent financial performance supporting fund balance growth and liquidity profile

  • Possesses manageable debt with elevated pensions


In addition to the tax-exempt general obligation bond offering , the city's $2.5 million taxable general obligation bond offering received three bids. The winning bidder was Fidelity Capital Markets, with an average interest rate of 4.54 percent, the city said.


According to the city, the bond proceeds will be used to finance various capital projects.


"The affirmation of the city's AAA bond rating by Standard & Poor's Global Ratings just prior to the sale was extremely important in creating a competitive market for the city's bonds," Griffin said.

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