For Immediate Release November 19, 2024
City of Petersburg Bond Rating Upgraded
S&P Global Ratings has upgraded the City of Petersburg’s general obligation (GO) bond rating to AA- from A+. This upgrade reflects Petersburg's continued achievement in obtaining a solid and secure financial position, including increased reserves and liquidity.
"The upgrade reflects the city's sustained positive operating results, ongoing economic development, and management practices that support its high fund balance," said S&P Global Ratings credit analyst Kaiti Vartholomaios.
Petersburg's full faith and credit pledge secures the GO bonds outstanding. The 2024 GO bond proceeds will finance the new courthouse facility, the renovation of a new police station, the construction of a new animal care center, and $1.3 million for refinancing older bonds for net savings.
"Petersburg’s upgraded bond rating reflects continued growth and economic recovery,” said City Manager March Altman. “Petersburg has a fund balance of approximately 50 million dollars, which gives it the flexibility to move forward with needed capital projects. I commend City Council and Petersburg’s Department of Finance for making decisions based on sound fiscal management and best practices.”
Governance is a key rating factor for Petersburg. This is reflected by the City’s formalized budget, debt policies, and proactive management and monitoring of revenue and expenditure performance. The enhanced credit rating brings:
· Lower interest rates;
· Increased borrowing power;
· Economic development opportunities, and
· Investment options.
“Petersburg’s goal is to achieve a firm AAA rating,” said Mayor Sam Parham. “With the growth of the Pharmaceutical Campus, the recent approval of the Destination Resort Casino, and the many other economic development and tourism projects, the City is positioned to continue to grow its tax base and fund balance while addressing much-needed capital projects.”
Moody’s has affirmed the City’s A1 underlying and Aa1 enhanced ratings, and Fitch has affirmed the City’s A+ rating. This means that the City has a strong capacity to meet its financial commitments and is subject to low credit risk.