Moody's Investors Service said it has assigned a Aa2 rating to Merrimack County, N.H.'s $26.1 million 2014 general obligation refunding bonds, and upgraded to Aa2 from Aa3 the rating on $48 million of outstanding debt, including the current issue.
Proceeds of the bonds will be used to advance refund a portion of the county's previously-issued Series of 2006 and 2007 bonds for an estimated net present value savings of $1.2 million, equal to approximately 4.5% of refunded principal, with no extension of maturity. Payment of the bonds is secured by the county's unlimited general obligation property tax pledge.
The upgrade to Aa2 reflects the trend of stable financial operations, despite mandated nursing home services, with sufficient reserves that have increased steadily over time. The rating also incorporates the large tax base with low unemployment due to the presence of state government and health care sectors as well as a low debt burden.
