Loveland broadband bonds rated at A+

LOVELAND — Bonds to finance a new fiber optic network to provide broadband connectivity in Loveland will go to market with an A+ rating.

Securities rating agency S&P Global Ratings provided the ratings for the two series of bonds that will provide both construction and operational funding.

The bonds head to market in the coming weeks. The city’s Electric Utility Enterprise will offer $60.9 million in 30-year tax-exempt bonds in one series, and another consisting of $28.785 million in taxable revenue bonds will complete the $88.8 million offering.

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The A+ rating announced Wednesday, combined with interest rates that have dipped slightly, mean the city should fare well in the transaction that raises capital for the construction and initial operation of the fiber-optic broadband internet network that the city council approved earlier this year. A+ is a good rating, but there are three ratings that are higher in the S&P system (AA+, AA, AA-).

“This is the result of some really great teamwork within the city, with the broadband team, the Water and Power Department and the Finance Department all working so well together,” said Alan Krcmarik, acting finance director.

The city team, working with financial consultants and bond underwriters, has been finalizing the offering over the past several months. Krcmarik said the underwriting agency gave the city high marks for the work done.

“They told us, ‘You guys have not been in this business very long, but you act as if it’s something you’ve been doing all along,’” Krcmarik said.

S&P Global’s profile cites:

• Strong operational management assessment.
• Strong service area economic fundamentals.
• Strong market position.
• Extremely strong industry risk relative to other industries and sectors.