Standard and Poor’s upgrades city’s credit rating to AA+
Increase will result in savings from reduced interest rates on municipal bond debt
Standard and Poor’s Global Ratings recently raised the City of Midlothian’s credit rating up one notch from “AA” to “AA+”, resulting in a significant savings due to reduced interest rates on general obligation and certificates of obligation debt over the next 20 years.
As stated by Andrew Friedman of SAMCO Capital Markets, the city’s bond consultant, “The city should be quite proud of this upgrade in its credit rating, which has not happened since 2014.”
The credit rating summary issued by the Standard and Poor’s analysts states, “We view the city’s management as very strong with financial policies and practices … that are strong, embedded, and likely sustainable.” Friedman further elaborated that the bond rating reflects Midlothian’s economic growth and per-capita wealth.
Chris Dick, Midlothian’s city manager, explained that the AA+ rating will help to make taxpayer dollars go further as the city issues new general obligation bonds to build the voter-approved public safety center and the new public library and city hall. “The credit for this accomplishment belongs to the city’s talented and dedicated Finance Department team,” Dick emphasized.
According to Standard and Poor’s Global Rating Service, “Credit ratings are forward-looking opinions about the ability and willingness of debt issuers, like corporations or governments, to meet their financial obligations on time and in full. They provide a common and transparent global language for investors and other market participants, corporations and governments, and are one of many inputs they can consider as part of their decision-making processes.”