Bangor financial position earns high marks

BANGOR – Two major credit rating agencies have assigned the city high marks, citing its “sound financial position.”

Moody’s, a New York-based credit rating agency, last week assigned the city an Aa3 rating, unchanged from last year.

“Moody’s believes the city’s financial operations will remain favorable, given the trend of conservative budgeting, healthy reserves and expenditure controls,” the agency said in its report. “The Aa3 bond rating reflects the city’s role as a major regional economic center, average wealth levels, a favorable debt position and well-managed financial operations.”

The ratings apply to both the city’s outstanding general obligation bonds as well as $5.82 million in bonds to be issued this year and another $4 million of anticipated bond notes for the expansion of Bangor High School.

Proceeds of this year’s issue will be used to expand the Pickering Square parking garage, continue the city’s multiyear combined sewer overflow control program, and support a variety of smaller projects.

In addition to the Moody’s rating, Boston-based Standard & Poor’s issued the city a similar rating of AA-, citing Bangor’s position as the region’s economic hub.

“The stable outlook reflects Standard & Poor’s expectation of the city’s continued status as a regional economic engine and retail center and its maintenance of historically solid fiscal and debt profiles.”

The new bond ratings came as welcome news to city officials.

“These ratings continue to recognize the city of Bangor as one of the strongest municipal credits in the state and among the strongest nationally,” city Finance Director Ron Heller said Monday. “They assure investors that the city is well managed, financially strong and actively planning for the future.”

The Standard & Poor’s rating marks the first time the agency has rated the city, which in past years has relied on one rating. Heller said Monday that the city sought the second rating, in part, to better its position among bond buyers in anticipation of larger capital projects.

“As we grow and start to do more projects, like the waterfront, we may want to borrow more or with more frequency,” Heller said. “To do that, and play with the big boys, you really have to have two ratings in place.”

In its rating, Standard & Poor’s also cited the city’s 97 percent tax collection rate for fiscal year 2000, up from 95 percent in fiscal year 1999.