The city of Magnolia has received a high rating from Standard & Poor's ratings service, which helped the city save money on its recent sale of bonds, City Administrator Paul Mendes said.
Standard & Poor, one of the top three rating agencies on Wall Street, gave the city an A+ bond rating, which means it recognizes the city's credit worthiness. A high rating is beneficial to the city because it gets a better interest rate when it sells bonds. As a result of the high ranking, the city saved $1.6 million on its recent sale of bonds, Mendes said.
"Over the life of these bonds the city will save a substantial amount," he said. "I am very proud of the fact the city of Magnolia has once again been recognized for its sound fiscal management."
The city sold $6.06 million in bonds, including an existing 30-year, $4.8 million bond for wastewater and water improvements that was approved in 2006, Mendes said.
