CONCORD, N.H. — The financial adviser to the New Hampshire Municipal Bond Bank doesn’t think last week’s downgrade will make it more expensive for cities and towns to borrow money.
Fitch Ratings announced it was recalculating how it rates leveraged municipal loan pools, tying it to the state’s credit rating. That resulted in a AA- rating, one notch below its previous status.
Cinder McNerney, managing director of First Southwest, said that since the downgrade came from a change in methodology, and not from any weakness in the Bond Bank, she does not think investors will be less willing to purchase local New Hampshire debt.
“We do not believe the new credit rating of Fitch Investors Service will result in higher costs of borrowing for the NHMBB. We’ve been using the NHMBB’s S&P (AA stable) and Moody’s (Aa3 stable, and equivalent to the new Fitch rating) ratings to market NHMBB bonds since the beginning of 2012″ McNerney said. “We think the NHMBB debt will be as desirable in the market now as it was prior to Fitch’s announcement.”