The City of Wilmington got high marks for its financial strength following a review by the three major credit rating agencies last month. Along with maintaining current ratings with Fitch and Moody’s, Standard & Poors upgraded the city’s rating to AAA. In addition, City Council approved a bond refinancing at their June 6 meeting, which is expected to result in savings of more than $2 million.
Like most city governments, Wilmington issues bonds to pay for large construction projects such as the police headquarters and fire stations. The projects are paid back over time, like a homeowner pays a monthly mortgage. The better bond ratings result in lower interest rates and, in turn, lower borrowing costs.