Muni bond rating

dickdriver
Double Bogie

Posts: 7

Muni bond rating Mar 28, 2018 19:55:24 GMT

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Post by dickdriver on Mar 28, 2018 19:55:24 GMT

The board make several comments about losing AA+ rating and moving down to AA-. I checked with fianncial markets analyst. The cost is "negligible". Probably about 5 basis points. This equats to $50 more in interst per million dollars borrowed. An example of the board making something sound as if it is tragic when in fact it is meaningless when only borrowing $5,000,000.

I do not beleive that the board members really understand this point.

Dick Driver

Last Edit: Mar 28, 2018 19:56:18 GMT by dickdriver

Mike Galeski Guest	Muni bond rating Mar 29, 2018 0:39:56 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by Mike Galeski on Mar 29, 2018 0:39:56 GMT thanks for that info. MG

Dick Driver
Guest

Muni bond rating Mar 29, 2018 11:47:50 GMT

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Post by Dick Driver on Mar 29, 2018 11:47:50 GMT

I made a mistake in calculating this too quickly in my head. The cost per million would be $500 for a 5 basis point premium. Or $2,500 for $5,000,000.

The point is still valid. It is a negligble amount of money compared to the total property taxes received by the Park District of $2,870,000.

The Board is either misinformed about the impact of being downgraded to AA- or are throwing it out as another negative fact to doom the golf course.

Dick Driver

Post by dickdriver on Mar 28, 2018 19:55:24 GMT

Post by Mike Galeski on Mar 29, 2018 0:39:56 GMT

Post by Dick Driver on Mar 29, 2018 11:47:50 GMT

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