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<br />e <br /> <br />e <br /> <br />Honorable Norman Malone <br />June 16, 1998 <br />Page 2 <br /> <br />It might be helpful for you to know the various rating categories and they are as follows: <br /> <br />Moody's <br />"Aaa" <br /> <br />S&P's <br />"AAA" <br /> <br />"Aa"(1)(2)(3) <br />"A"(1)(2)(3) <br />"Baa"(l )(2)(3) <br /> <br />"AN'(+)(-) <br />"A"(+)(-) <br />"BBB"(+)(-) <br /> <br />All the ratings shown above indicate the Bonds are of investment quality. The rating <br />below "Baa" and "BBB" respectively, indicate the Bonds are speculative investments with some <br />possibility of default. <br /> <br />There typically is approximately 0.25% variation in the interest rate that bonds sell for <br />between the rating categories. For example if the City G.O. Bonds were rated Moody's "A" and <br />S&P's "BBB" instead of Moody's "Aa3" and S&P's "A+" the interest cost would be <br />approximately $70,000 higher. <br /> <br />Once again we thank you, Bob, Jeff and John for your participation in the rating interview <br />process and we 'know it was in the best interest of the City's credit rating to have you all there. <br /> <br />Sincerely, <br /> <br />f [kV1;f:k~ <br /> <br />R. David Fetzer II IS <br />President <br /> <br />l111~~ ~ ~~ <br /> <br />Moss K. Fetzer <br />Vice President <br /> <br />RDF/MKF:smt <br />cc: City Council <br />City Manager <br />Asst. City Manager <br />Asst. City ManagerlFinance <br />