Prudent fiscal management has earned the city of Rochester the highest short-term bond rating from S&P Global Ratings.
In issuing the SP 1+n rating, S&P Global Ratings determined the city has the very strong capacity to manage short-term debt with minimal risk to investors and taxpayers.
The financial analytics service also affirmed the city’s AA and SP 1+ratings on existing long- and short-term bond issues.
“This rigorous outside review of city finances, economic activity and market conditions confirms what we in the city already know: Rochester is an excellent investment and getting better every day,” Mayor Malik Evans said in a news release.
“Moreover, it provides clear and convincing evidence that our strategic investments are working to accelerate business growth, empower residents and expand generational wealth in every neighborhood,” Evans said.
Bond ratings are quite similar to consumer credit scores. Higher ratings allow municipalities to borrow money at lower rates and also provide insight into their economic outlook.
S&P cited several factors in issuing the latest rating, including:
» Conservative budgeting practices. “We expect performance to remain strong given recent trends and management’s ability and willingness to adjust its budget, resulting in continued stability in its very strong reserves and cash balances,” the report said.
» A growing local economy and ongoing development;
» Recent property reevaluation, reflecting growth beyond earlier projections, S&P said.
» Improved fiscal management of the Rochester City School District. S&P believes “that there will be no imminent budgetary pressure from the district on the city’s finances.”
» Adoption of a Climate Change Resilience Plan.
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