Refinancing Debt Certificates to Save Barrington $570,000

A recent Moody's Investor Services rating allowed the village to refinance General Obligation Debt Certificates.


The will save $577,748 over the next 11 years after refinancing outstanding General Obligation Debt Certificates.

The average interest rate on the $4,590,000 in refinanced Debt Certificates was lowered from 4.148 percent to 2.742 percent, thanks to an exemplary rating by Moody’s Investor Services. The village received a rating of Aa1, just one step below the highest rating of Aaa.

“This is an incredibly strong rating for a smaller non-home rule municipality in Illinois and demonstrates the village of Barrington’s strong credit profile,” said Eric Anderson of BMO Capital Markets.

In a letter written by Moody’s, the company noted the Aa1 rating is a reflection of great financial management.

“...strong credit fundamentals inherent in the village’s overall credit profile, including: solid financial operations with healthy operating reserves and prudent fiscal management; a modestly-sized residential base featuring above average income levels; and a manageable debt profile,” the letter read.

Village President Karen Darch echoed Moody’s notions regarding the staff’s financial responsibility.

“In the last three years, both Standard & Poor’s and Moody’s have recognized the village’s solid financial management…These strong ratings have allowed the village to refinance outstanding debt and reduce its interest cost by $1,113,400. Much of this savings was passed on to our residents through lower property taxes and lower water & sewer utility rates,” Darch said. 


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »