News from the Somerset County Board of Chosen Freeholders
Public Information Contacts: Linda Van Zandt / Joanne Vuoso / Lisa Krueger
908.231.7020 publicinfo@co.somerset.nj.us
June 27, 2012
Somerset County Gets Low Interest Rate
on General Obligation College Series Bonds
Somerset County came out ahead on its sale of $7.1 million in general obligation college-series
bonds on June 21, based on the strength of its continued triple-A bond rating.
The county was able to attract a historic low interest rate of 2.3 percent on the bonds, in part
because of the recent triple-A bond rating from Moody's Investors Service, which praised the
county's low debt ratios and prudent fiscal management practices as contributing to its continued
soundness as a long-term investment.
"The highest quality Aaa rating reflects the county's sizeable and diverse tax base, which is
expected to remain relatively stable over the near-term, and high wealth levels,” Moody’s report
stated. “The rating also considers the county’s modest debt position and sound financial position
that benefits from forward-looking management practices.”
“European debt worries and the U.S. low jobs report are contributing factors in keeping the 10year treasury yield low,” said Freeholder Robert Zaborowski, county finance liaison. “The county’s
triple-A rating on these bonds from Moody’s, along with the 10-year treasury yield being at 1.63
percent the day of our sale, both helped make it a good day to sell bonds.”
The bond sale totaled $7,100,000 and netted a true-interest cost of 2.33 percent. The
successful bidder was Janney Montgomery Scott, LLC, of Philadelphia, Pa.
The bonds will be used for the Raritan Valley Community College student center, classroom and
office renovations, the observatory and other renovations.
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Patricia L. Walsh, Freeholder Director  Peter S. Palmer, Freeholder Deputy Director
Robert Zaborowski, Freeholder  Patrick Scaglione, Freeholder  Mark Caliguire, Freeholder
Somerset County Is An Equal Opportunity Employer