SOUTH PORTLAND — The city will net nearly $700,000 in savings through a refinancing that will provide better interest rates on school bonds issued in 2010 and 2012.
Finance Director Greg L’Heureux said the city’s new interest rate will be 1.86 percent. The interest rate for the 2010 bond was 3.4 percent for a project to address preliminary construction issues for the high school and for improvements to Memorial and Mahoney middle schools. The second bond was issued for the high school expansion and had an interest rate of about 3.6 percent.
The city was able to get a lower interest rate because two leading bond rating companies continued their favorable ratings, indicating the city is financially stable.
L’Heureux said Moody’s Investors Service gave the city an Aaa rating, and S&P Global rated South Portland AAA.