Mayor Dan Rizzo and Revere Director of Finance George Anzuoni spoke at the City Council meeting Monday night about the City’s recent Standard and Poor’s Rating Servings Report upgrade.
The City of Revere was granted a bond rating of AA- with a stable outlook, an upgrade from last year’s A+ rating. The city is now in a high-grade investment category, meaning that Revere can save substantial amounts of interest charges when borrowing and issuing municipal bonds for large projects
It also contracts the City’s rating just 15 years ago when Revere was at junk bond status and on par with war-ravaged El Salvador.
The Standard and Poor’s Rating Service rates the financial stability of countries, corporations, and municipalities across the globe. It took into account the City’s finances, future economic outlook, educational expense and debt service to determine its marketability to investors and businesses. According to S&P’s definitions, Revere is at a “very strong capacity to meet financial commitments.”
In the report S&P stated:
“The stable outlook reflects our opinion of Revere’s strong budgetary performance, supported by very strong liquidity and budgetary flexibility. For these reasons, we do not expect to change the rating within the outlook’s two year time frame.”
Mayor Rizzo told councillors that with this upgrade Revere will be able to be more competitive in the financial markets. The new rating will allow the City to borrow money at a lower interest rate, resulting in millions of dollars in savings.
“It may seem like just another agenda item but this is huge,” says Mayor Rizzo. “This is going to have a long term, significant impact.”
Both Mayor Rizzo and Anzuoni said that the money they will save would go to City services.
They hope the upgraded rating will help them when it comes time to build a new high school and update infrastructure around the Revere.