The Boise Centre’s bond rating has improved from an A to an A+.
The Greater Boise Auditorium District, which owns the Boise Centre, was recently notified by Standard & Poor’s Rating Services that it was upgrading the Centre’s lease revenue bond rating. The rating, considered an investment grade bond, is now viewed as an upper medium grade. S&P ratings continue through AAA.
The good news about such a ratings increase is that it could help the district save money on bonds. The bad news is that it wouldn’t help with any bonds the district already has.
“The bond rating really has an impact moving forward, not retroactively,” said Pat Rice, Boise Centre executive director, in an email message. “So if we decide to participate in any major project beyond our cash position, and the Board looks to go to the bond market instead of using up cash reserves, then theoretically (and depending on the type of project, scope etc.) the new rating should help with a lower interest rate.”
But the primary effect of the new rating is to let the district, as well as Boise itself, know it’s doing a good job, Rice said.
“Really, the gist of the new rating is a positive indicator for the District as it pertains to the fiscal management of Boise Centre, its continued success, strength of the hotel market (related to lodging tax collections) and overall positive business environment within the Community,” he said. “While it’s a positive reflection of the District’s overall business position, it also recognizes the overall continued strength of the Boise economic climate.”