Indiana is AAA-OK
"The triple-A rating means Indiana is more of a sure thing," said Matt Reardon, Director of Community and Economic Development - Indiana at Short Elliott Hendrickson. "The advantage, simply stated, is lower interest rates. A better bond rating is like having better credit. It costs the state less money for capital." This is the first time in the state's history that the rating has been raised to AAA. Beginning in June 2005, Indiana's rating has been raised three times. According to Standard & Poor's, the upgrade reflects the state's continued strong management and commitment to attract diverse jobs through its economic development efforts. The triple-A rating can be an economic development advantage, said Karl Cender of Cender and Cender. Lower interest rates may make it attractive for a city to put in, for example, water or sewer improvements. Or, a manufacturer looking to locate in Indiana may lower the cost of borrowing by working with cities and LEDOs to finance using volume cap bonds (industrial revenue bonds) through the Indiana Finance Authority. Cender added, "There are certainly no disadvantages to the triple-A rating." Matt Reardon Director Community and Economic Development — Indiana Short Elliott Hendrickson Inc. 219-513-2500 mreardon@sehinc.com www.sehinc.com Karl Cender Cender & Company LLC P 219.736.1800 office@cendercompany.com www.cendercompany.com Standard & Poor's Ratings Services www.standardandpoors.com We want to make this a valuable communication piece that you look forward to reading each month. Please let us know how we can make it more useful to you. Contact Diane at dlthalmann@nisource.com. |
