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The original item was published from 9/7/2018 5:11:40 PM to 10/1/2018 12:00:02 AM.

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Town Information and News

Posted on: September 7, 2018

[ARCHIVED] Town of Palm Beach Receives AAA and Aaa Ratings on the General Obligation Bonds

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The Town expects to price the General Obligation Bonds, Series 2018 (the “2018 Bonds”) next week (September 13).  The 2018 Bonds are being issued in an amount not to exceed $60 million to finance a portion of the Town’s Underground Utility Project.


The rating agencies of S&P and Moody’s have assigned AAA and Aaa ratings to the 2018 Bonds, respectively, and S&P affirmed the AAA issuer rating and the AAA long term rating on the Town’s Non-Ad Valorem Revenue Bonds.  The General Obligation bond ratings from S&P and Moody’s are the highest rating classification given by each agency.


According to Moody’s, the credit strengths of the Town include the large tax base coupled with strong demographics (wealth levels), healthy financial position, low debt and pension burdens, strong management practices and adherence to formal fiscal policies.   


According to S&P the ratings are based on their assessment of the Town’s very strong economy; very strong management; strong budgetary performance; very strong budgetary flexibility; very strong liquidity; weak debt and contingent liability position but low overall net debt; and strong institutional framework score.


Copies of the full reports from the rating agencies and the Preliminary Official Statement are linked below.


Citigroup Global Markets is the underwriter of the 2018 Bonds and Town residents may place orders for the 2018 Bonds through Citi's Personal Wealth Management by calling Edward Redler at (561) 624-1308 prior to the offering. All local retail orders will be given priority during the bond sale. This press release is not an offer to sell nor a solicitation to purchase the 2018 Bonds and any investment decisions regarding the 2018 Bonds should only be made after a careful review of the complete Preliminary Official Statement. The Preliminary Official Statement can be found online at http://www.munios.com.


This press release does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including the 2018 Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the 2018 Bonds will be made solely by means of the Preliminary Official Statement, which describes the actual terms of such Bonds. In no event shall the Underwriter or the Town be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction mentioned herein. The Underwriter and the Town make no representations as to the legal, tax, credit or accounting treatment of any transactions mentioned herein, or any other effects such transactions may have on you and your affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of the 2018 Bonds. Nothing in these materials constitutes a commitment by the Underwriter or any of its affiliates to enter into any transaction. No assurance can be given that any transaction mentioned herein could in fact be executed. Past performance is not indicative of future returns, which will vary. Transactions involving the 2018 Bonds may not be suitable for all investors. You should consult with your own advisors as to the suitability of the 2018 Bonds for your particular circumstances.


S&P Global Rating Report

Moody's Rating Report



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