Standard & Poor’s Global Ratings reaffirms the City of Hoboken’s AA+ credit rating, which they first received from the credits rating service about four years ago.
By John Heinis/Hudson County View
The city’s high credit rating will benefit residents due to low interest rates and debt service payments when issuing bond proceeds for capital improvements and acquisitions.
In addition, the city qualified for low-interest loans with principal forgiveness though the New Jersey Infrastructure Bank to help fund the Northwest Resiliency Park, at no impact to the 2022 municipal budget.
“Despite the many challenges presented by the COVID-19 pandemic, I’m incredibly proud that we have continued to maintain our exceptionally strong credit rating,” Mayor Ravi Bhalla said in a statement.
“Over the past several years, our AA+ rating has allowed my administration to initiate a number of major infrastructure improvements including resiliency parks, water main upgrades, Vision Zero pedestrian safety improvements, and more, which will continue thanks to S&P’s affirmation of the City’s rating. Our financial outlook remains bright, and we will continue to produce fiscally responsible budgets that protect taxpayers in both the short and long-term.”
The report asserted that the city has an extremely strong local economy, “a financial management policies and practices …with a strong institutional framework,” a strong budgetary performance, and a strong cash position.
“It is great news to see that the smart financial decisions and investments by Mayor Bhalla and his administration, in particular Business Administrator Freeman and the Finance staff, continue to be validated with today’s reaffirmation of the City’s strong AA+ bond rating,” said Council Vice President and Finance Subcommittee Chair Emily Jabbour.
“I look forward to working collaboratively with the Administration to present another balanced budget with the support of my colleagues in 2022.”
