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Moodys Investors Service Characterizes Dismissal of BT Lawsuit as Credit Positive

FOR IMMEDIATE RELEASE

January 8, 2015
Contact:  Mike Kanarick
                    802.735.7962

Moody’s Investors Service Characterizes Dismissal of BT Lawsuit as Credit Positive

Burlington, VT – Moody’s Investors Service today published its US Public Finance Weekly Credit Outlook, including a feature article that addresses the effect of the dismissal of the Burlington Telecom lawsuit as credit positive.  The article specifically states: “The dismissal is credit positive for the city because it effectively ratified a settlement reached between the city and the complainant Citibank, N.A….last February, which is favorable to the city.”

“Last Friday, we definitively ended a long and unfortunate chapter in the City's history by securing a dismissal of the Burlington Telecom-Citibank lawsuit,” said Mayor Miro Weinberger.  “Now, the expected improvement of Burlington’s standing in the financial markets has begun.  Over time, completing the settlement will keep millions of dollars in the pockets of Burlingtonians.  We have proven ourselves to be a community that can work together to overcome its toughest challenges.”

On April 14, 2014, Moody’s published a Ratings Report, in which it improved Burlington’s credit rating outlook to “stable” – revising the City’s rating to “Baa3 stable” from “Baa3 negative.”  One highlight of that report was Moody’s listing the “[c]losing of BT settlement without alteration of current terms”  as a factor that “would make the rating go up” in the future.

*Moody’s Investors Service feature article about dismissal of BT lawsuit as credit positive from January 8, 2015 issue of US Public Finance Weekly Credit Outlook is available here.

Press Release Date: 
01/08/2015
City Department: 
Mayor's Office