S&P Global Ratings has upgraded the Development Finance Authority of Summit County’s rating for DFA’s Jobs and Investment Bond Fund from A- to A, the S&P announced this month.
That’s welcome news for the agency that serves as the area’s port authority; the improved rating could be key to attracting more investment and development in the region.
Borrowers’ interest rates are likely to decrease by about 0.15% to 0.2%, said DFA President Chris Burnham.
“And the A rating perhaps opens up some additional buyers that won’t buy A- or lower-rated debt because it is a higher rating that tends to translate into a lower cost of borrowing,” Burnham said. “So we would pass that on to our clients.”
Burnham said he does not know specifically who new buyers would be, but said entities that buy debt in the capital markets include insurance companies and other investors.
Entities that borrow from the Jobs and Investment Bond Fund include both those that are tax-exempt and those that are taxable, Burnham said. Both tax-exempt and taxable entities can buy 10-, 15- or 20-year bonds, and tax-exempt entities can also buy 30-year bonds, he said.
Generally, taxable entities borrow at a rate 0.5% higher than tax-exempt entities on 10-, 15 and 20-year bonds, he said.
Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@gannett.com or on X, formerly known as Twitter, @pwilliamsOH.