Mayor Malik D. Evans announced today that Standard & Poor’s Global Ratings (S&P) agency has assigned the City SP-1+ short term and AA- long term bond ratings.
The City’s finances reflect a “stable overall economic profile,” according to the S&P. “Rochester’s financial profile remains stable, supported by well-embedded financial policies and practices and a growing economic base,” according to the bond rating agency.
“We’re encouraged by Rochester’s dependable financial ratings,” said Mayor Evans. “Sound bond ratings allow us to be more dynamic and effective in financial policymaking by improving our ability to borrow and invest strategically. This rating reflects the responsible fiscal management of all of our departments as we work to create a hope-filled city with a prosperous future.”
The S&P was confident that “Rochester maintains a very strong capacity to pay principal and interest when the notes come due.” The agency found that the City has “high cash reserves and manageable debt burden” that positions Rochester to deal with potential financial pressures.
The City’s finances undergo rigorous review in determining its municipal bond rating. Strong bond ratings translate to lower interest rates and reassure businesses and investors, which encourages development and jobs in communities.
S&P attributes Rochester with sound financial prospects as “Rochester’s economic base shows ongoing development, which should lead to tax base growth over time,” with “large stabilizing institutions” and “continued growth across residential, commercial and industrial sectors.” The agency “expect[s] 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.”
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