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Town maintains AAA rating for bonds for school construction

by | Jun 11, 2020 | News

Hopkinton has maintained its AAA rating — the highest level of creditworthiness a municipality can achieve — for the recent issue of $9.5 million in bonds to be used for school construction, the town announced Thursday.

This rating allows the town to borrow money at the lowest commercial interest rates possible.

“It was gratifying to retain Hopkinton’s top-tier AAA bond rating from Standard and Poor’s, even in the midst of a national economic crisis,” chief financial officer Tim O’Leary stated. “The rating agency specifically noted Hopkinton’s very strong financial management practices and prudent budget management as key factors supporting our AAA rating.”

Added Town Manager Norman Khumalo: “By earning the top rating of AAA as a borrower, Hopkinton is able to obtain needed funds at the lowest possible interest rates in the market, saving our taxpayers money at a critical time.”

Treasurer Chris Heymanns indicated the rating will save the town between $250,000 and $320,000 in interest expense over the life of the borrowing, as compared to the next lower rating.

The borrowing will support the construction of 16 new classrooms to address school crowding. Town voters supported the project at the December 2019 Special Town Meeting and the ballot vote in February 2020 as well.