RED BANK BONDS SHRUG OFF MOODY’S MOOD

money-half-columnWall Street debt-rating agency Moody’s may take a negative view of Red Bank’s fiscal situation, but investors don’t, town officials said Tuesday night.

Councilman Mike DuPont, who heads the borough’s finance committee, said investors had snapped up $5.4 million worth of bonds offered in a recent refinancing. The followed Moody’s report at the end of October, which said that its Aa3 rating on $25.2 million worth of general-obligation bonds could be downgraded if “recent fiscal strain” continues.

“The investors disregarded the outlook, and looked to the steps we took to be fiscally responsible,” DuPont said at the council’s bimonthly meeting.

He said the bonds had gone at a “phenomenally low” 1.13 percent interest rate.

Mayor Pasquale Menna reiterated comments he made at the time of the Moody’s warning, saying that it was prompted by steps that Red Bank, like all other other municipalities, had been pressed by Governor Chris Christie to adopt.