County's strong credit rating saves taxpayers in recent bond refinancing
After a recent refinancing of $72 million in general obligation bonds, Galveston County has lowered its interest rate which will result in $6.6 million in savings over the next 11 years.
The new interest rate for the refinancing bonds is 2.63 percent, a decrease from the current average of 3.85 percent.
According to County Judge Mark Henry, this refinancing resulted in a better than expected savings.
“We’re proud to say this will result in savings of over $600,000 per year,” Judge Henry said. “Given the strength of the County’s ratings and the upgrade to Aaa by Moody’s Investors Services, the County was able to enter the market at an opportune time with a strong outlook to investors.”
This was the first year the county has received a Aaa rating from Moody’s. Galveston County has joined the ranks of nine other counties in the state with at least one Aaa rating and is the only county on the Texas Gulf Coast with the highest possible rating.