Bank of ND gets stronger financial rating

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BISMARCK, N.D. (AP) — An independent review of the Bank of North Dakota says it has gotten financially stronger.

The bank is the only state-owned bank in the country. The Standard & Poor's agency upgraded its rating of the bank's business this month.

Bank President Eric Hardmeyer says the higher rating improves the bank's ability to provide letters of credit.

Private banks and state agencies use letters of credit to guarantee a loan. Hardmeyer says a Bank of North Dakota guarantee helps customers get lower interest rates. That means lower financing costs for projects.

Directors of two North Dakota banking groups say the Bank of North Dakota's improved rating is good news for the state's economy.

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