Medford Gets A1 Bond Rating, Mayor Lauds Savings from Re-Financing

The city of Medford has been given an A1 bond rating by Moody's, according to a statement from Mayor Michael McGlynn.

"In these difficult times, we are proud that the City has retained its rating while continuing to improve the quality of fife for our residents," McGlynn said in a written statement.

Moody's highlighted the City's strengths as having a low direct debt burden, a stabile of local economy with institutional presence, and large, favorably located tax base with redevelopment potential, McGlynn's statement said.

The City will reap an immediate savings in the Fiscal Year 2012 budget both from this rating and from refinancing $31.5 million in bonded debt, which will save the city $879,000 over the life of the bond, McGlynn said.

While the 2012 Budget assumed a $224,000 savings, the actual results from the bond offering yielded a $342,000 savings in this current year, McGlynn's statement said.

A total of $3.2 Million will be shared between the City and State over the life of the bond, which was taken out to finance the construction of two new middle schools and four elementary schools.

"The savings are a reflection on the current financial market from that of 2001 when we initially went out to bond," McGlynn said in the statement. "The city continues to seek out cost saving measures during these difficult times."