The City of El Dorado received a positive credit rating on its long-term and short-term general obligation bonds from S&P Global Ratings.
S&P assigned its AA-/Stable long-term rating to El Dorado’s anticipated $6.6 million series 2024-A general obligation (GO) bonds and its SP-1+ short-term rating to the City’s anticipated $3.97 million series 2024-1 GO notes. In addition, they affirmed the AA-/Stable rating on the City’s existing GO debt. When issuing the rating, S&P looks at the City’s revenues, expenditures and the economic outlook for the community.
This rating allows the city to receive a low interest rate when issuing the bonds because it provides assurance to investors who are buying the bonds of the City’s credit rating.
Proceeds from the 2024-A bonds and 2024-1 notes will be used to fund city infrastructure projects and to retire a portion of the city's previously issued GO temporary notes.