Bond Refinancing to Save the County $7.5 Million

Refinancing of 2003 debt to take advantage of today’s lower interest rates could save Gwinnett County and its water and sewer customers as much as $7.5 million, according to an announcement by the county. All three bond-rating agencies gave the county’s proposed $166-million bond refinancing their top AAA credit ratings. The county plans to refinance the bonds in late June in a negotiated sale. 

"Gwinnett County has maintained the highest bond ratings since 1997, and that is directly attributable to the organization's long history of sound financial management,” said Commission Chairman Charlotte Nash in the announcement. “I am pleased that the efforts of county staff have given us a chance to reduce debt payments." 

The three agencies – Fitch Ratings, Moody’s Investors Service, and Standard and Poor’s – also reaffirmed their AAA ratings on other Gwinnett County debt, including $63.4 million in general obligation bonds for the Pre-Trial Detention Center, $1.02 billion in water and sewer bonds, and $96.4 million in Development Authority bonds for the Gwinnett Center, the announcement stated. The agencies warned, however, that the uncertain legal status of Gwinnett's water supply could have a future adverse impact on the ratings. 

"I'm just so proud of our county staff," added District 1 Commissioner Shirley Lasseter, who represents Duluth, in the announcement. "They have worked very hard over many years to maintain our excellent credit ratings."