Petersburg’s Bond Ratings Upgraded
The City of Petersburg’s bond rating has been upgraded to an A+ from BBB+ by S&P Global Ratings, and to an A2 with intent to an A1 by Moody’s Investors Service. Obligations rated A2 by Moody’s are considered upper-medium grade and are subject to low credit risk.
"The three-notch upgrade reflects our view of Petersburg's adherence to improved management practices and policies as well as the city's achievement in restoring fiscal stability by bolstering reserves and liquidity," said S&P Global Ratings credit analyst Timothy Barrett.
The upgrade also reflects Moody’s view of Petersburg's continued achievement in obtaining a strong and secure financial position, that includes increased reserves and liquidity, such that short-term cash flow borrowing is no longer needed.
"This bond ratings confirms that Petersburg is on the road to recovery and growth,” said Mayor Sam Parham. “The city no longer depends on revenue anticipation notes (RANs) during the year for cash flow purposes. Petersburg has a fund balance of approximately $12 million dollars and it’s increasing. I commend the city team and city council for making decisions based on sound fiscal management and best practices that have led to creating a strong financial foundation for Petersburg.”
Governance is a key rating factor for Petersburg. This is reflected by the City’s formalized budget and debt policies in addition to proactive management and monitoring of revenue and expenditure performance. The enhanced credit rating brings:
- Lower interest rates;
- Increased borrowing power;
- Economic development interest, and
- Investment opportunities.
“Petersburg plans to stay on track to achieving a consistent AAA rating,” said Stacey Jordan, Petersburg Director of Finance. “Revenues and collections are up, while expenses are down. The City is positioned to continue to grow its fund balance which is essential in achieving and maintaining a high credit rating.”
All City financial statements are examined and certified each year by external auditors.
WTVR Report on Bond Rating Upgrade: https://www.wtvr.com/news/local-news/5-years-after-nearly-going-bankrupt-petersburg-bounces-back