Bidding was brisk by investors willing to lend Suffolk money at under 3% thanks to an improved bond rating under County Executive Ed Romaine.
The sale of $350 million in Tax Anticipation Notes at 2.94% and $46.4 million in Refunding Serial Bonds at 2.66% was reported by Comptroller John Kennedy. He attributes the impressive number of bidders to the county’s improved credit ratings which resulted in healthy competition, and significant cost savings for the residents of Suffolk County.
"We were very pleased with the results of today's sale and that the market is reacting favorably to the progress Suffolk has made, as evidenced by strong investor support,” Kennedy said.
The proceeds will be used to fund county operations until all property taxes are collected by Suffolk’s 10 towns and remitted to the county. They will be repaid in July. The Refunding Serial bonds were issued to refinance certain outstanding debt and will provide budgetary relief of over $1.5 million over the next four years, bringing the total savings achieved from refinancing debt to $60 million since 2015, according to Kennedy.
Suffolk has seen several bond rating upgrades in 2024 due to improved financial management and budgetary stability, credit rating agencies say. In February, S&P Global Ratings upgraded its long-term rating from A+ to AA- with a stable outlook. This reflected stronger financial performance, higher reserves, and improved fiscal policies .
In September, Fitch Ratings raised the county’s bond rating from A- to A and revised the outlook to “positive.” This improvement was attributed to efficient budgeting, increased reserves, and the county’s steps to address past structural imbalances. And in December, both agencies provided the county with the highest short-term ratings, F-1+ and SP-1+ for the recent tax anticipation notes, signaling strong fiscal stability heading into 2025.
These upgrades are expected to lower borrowing costs for the county and reflect growing confidence in its financial health.