Kalamazoo bond rating strong as others face meltdown

There have been warnings in recent months from the financial world about the possibility of another meltdown — this time in municipal bonds as governments find themselves unable to repay investors.

Bond-rating agency Standard & Poor’s recently warned that shaky city and state budgets may lead it this year to downgrade — or rank as more risky — more municipalities.

But the city of Kalamazoo, so far, isn’t experiencing problems selling its debt to investors, said Thomas Skrobola, the city’s director of finance.

Excerpt:

The city’s rating is “Double-A with a stable outlook,” Skrobola said, which means the city’s cost to borrow money is low.

“It’s effectively the highest rating you can have for these kinds of bonds,” he said.

To find out more about the city’s successful sale of bonds, read the rest of the story.

Source: MLive.com