A+ Rubber Stamp on Notebook Paper

You hear a lot these days about people checking their credit rating and their FICO score.  Standard & Poors recently reviewed the City of Sumner’s General Obligation debt (both the long-term and the underlying rating), and increased both ratings: long-term rating from AA to AA+ and underlying rating from AA- to AA+ (actually, a jump of two steps).  In their report, Standard and Poors said:

The ratings reflect our assessment of the following factors for the city:

  • Very strong economy…;
  • Strong management, with good financial policies and practices…;
  • Strong budgetary performance, with an operating surplus in the general fund and break-even operating results at the total governmental fund level in fiscal 2015;
  • Strong budgetary flexibility, with an available cash reserve in fiscal 2015 of 20% of operating expenditures;
  • Very strong liquidity, with total government available cash at 138.9% of total governmental fund expenditures…and access to external liquidity we consider strong;
  • Very strong debt and contingent liability position…with 70.3% of debt scheduled to be retired in 10 years; and
  • Adequate institutional framework score.

You can review the full report here:

S&P Sumner Review – Underlying Rating (pdf)

S&P Sumner General Obligation Report (pdf)

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