From David Volz
Mayor Daniella Levine Cava announced that Standard and Poor’s Global Ratings (S&P) and Moody’s Investor’s Service assigned Miami-Dade County “AA” known as stable outlook and “Aa2” also known as stable outlook for its $172,385,000 Florida Capital Asset Acquisition Special Obligation Bonds, Series 2023A. According to the reports, the County’s strong financial position, demonstration of policy effectiveness, and transparent governance profile contributed to the exceptional rating decision.
“Miami-Dade County’s solid ratings will allow us to fund critical capital improvement projects at a lower borrowing cost,” said Mayor Daniella Levine Cava. “We are grateful to our Finance Department and Office of Management and Budget for making this rating possible and acting as good stewards of the public’s funds. As we build more resilient infrastructure for the future and invest in our existing assets today, these ratings mean lower borrowing costs for us and residents across Miami-Dade.”
Bonds went to market on July 25, 2023, and 11 bids were subsequently received, demonstrating the strong demand for County debt to investors. The lowest bid saved the County approximately $250,000 compared to the 2nd bid. The true interest cost was 4.003743. Despite recent actions of the Federal Reserve Board to raise interest rates since March 16, 2022, these figures represent a relatively low cost of funds to finance county projects.
In 2023, the County received rating upgrades for various County credits, including Water and Sewer, Aviation, and non-advalorem credits. The Capital Asset Bonds successfully closed on August 10, and the sale proceeds will fund numerous general county projects.
