Moody’s upgrades Logan’s rating
Moody’s Investors Services has upgraded Logan Township’s credit rating — its “General Obligation Unlimited Tax level — from Aa3 to Aa2, according to a news release from the service.
The upgrade will help lower the cost of borrowing for Logan, according to Township Manager Tim Brown.
“The Aa2 rating reflects the township’s robust and stable financial position, with ample liquidity,” in terms of reserves, according to the news release and Brown.
The upgrade reflects the 59 percent increase in collective property value in the township as determined by the county’s recent reassessment, the news release states.
Two years ago, prior to the reassessment’s update of property values, Logan’s tax base wasn’t big enough to merit the upgrade when Moody’s did an evaluation, Brown said.
The upgrade also reflects the township’s “very manageable debt burden” and its continued securing of debt “by its full faith and credit, general obligation unlimited tax pledge,” according to the news release.
Moody’s assigned the new rating to $6.5 million in general obligation bonds, which refinanced 2012 bonds for a savings of $141,000, the news release states.
The ratings actually affect a total of $13 million worth of debt service payments, according to the news release.
Mirror Staff Writer William Kibler is at 949-7038.