New Orleans moves closer to $40 million bond sale

AP News
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Posted: Dec 11, 2009 10:58 AM

Good news for the city of New Orleans as it seeks to sell its first bonds since 2007: Moody's Investors Service has affirmed its investment-grade rating.

Thursday's announcement puts the city closer to holding a $40 million bond sale for street work next week. Fitch Ratings recently affirmed an investment-grade rating; Standard & Poor's rating is pending.

The city sold $75 million from a $260 million bond issue in 2007. Officials delayed a second, $80 million sale last year due to poor market conditions and a below-investment grade rating the city held.

After raising the city rating this year, officials decided to pursue a smaller sale they saw as being more palatable to the market. The city's also had budget problems.