Nearly $30 million in school refunding bonds that the City of Buffalo plans to sell next week have received an investment-grade rating from Fitch Ratings, one of the three major credit ratings agencies.
Fitch rated the bonds A+, which is in the middle of the scope of investment-grade ratings. An investment-grade rating generally allows a borrower to issue debt at a lower interest rate than on more risky borrowings.
The bonds will be issued in two series – one for $10.4 million and another for $19.6 million – and will refinance existing debt.
Fitch also affirmed its A+ rating on nearly $200 million of the city’s outstanding general obligation bonds and said the outlook for the future is stable, citing Buffalo’s improved fiscal condition under the Buffalo Fiscal Stability Authority. Fitch said the control board has “helped the city restore a sound fiscal foundation.”