Fitch Ratings has given a big “thumbs up” to investors eager for a slice of the town of Greenwich’s fresh round of $76 million in debt set for issue on Thursday.
The New York debt-rating service awarded its ‘AAA’ rating to the town’s pending issue of $21 million in general obligation bonds, and an ‘F1+’ rating to the town’s planned issue of $55 million in bond anticipation notes (BANs).
Greenwich and other municipalities rely on BANs as short-term instruments to borrow against the proceeds of an upcoming bond issue.
In this case, Greenwich is issuing both the bonds and the BANs to permanently finance a portion of outstanding BANs and to finance capital improvements.
Meantime, Fitch also affirmed its AAA and F1+ ratings, respectively, on $85 million in outstanding GO bonds and $40 million in outstanding BANs, issued in 2012.
