Rating for Burlingame bonds upgraded

The City of Aspen is pleased to announce the rating for bonds issued in 2005 for the Burlingame housing project have been upgraded to Aa3 from A1 by Moody’s Investors Services. The rating upgrade affects $7.7 million in outstanding rated debt. The bonds were secured by the City of Aspen which made a moral obligation on them in case of default.

“The upgraded rating demonstrates the strong financial position of the Burlingame Housing Inc. Corporation and the City,” said Finance Director Don Taylor. “While the rating upgrade will not affect debt service costs on the outstanding bonds, future financing vehicles of a similar type may be rated more favorably and reflect lower costs.”

Moody’s stated the City’s strong reputation as an internationally known resort along with prudent fiscal management helped secure the upgraded rating. In addition, the organization was impressed with the economic benefit the housing would make in the community.

The upgraded rating will also improve the market on any unsold bonds.