City obtains highest bond rating from Standard & Poor's, Moody's
The City of Naperville is proud to announce that it has been awarded the highest bond rating available on the City's 2011 General Obligation bonds by both Standard & Poor's (S&P) and Moody's Rating Services.
Both S&P and Moody's also affirmed the same ratings for all of the City's outstanding general obligation debt. Naperville is proud to have received the ‘AAA' rating by S&P consistently for every debt offering since 1994. The city has also held the ‘Aaa' rating issued by Moody's over the same 17-year period.
“Despite the difficult economic circumstances of the past few years, the Mayor and City Council have continued to implement sustainable financial management practices that contribute to these strong ratings,” Finance Director Karen DeAngelis said. “The City's well-managed financial operations, diversified tax base, unwavering commitment to a balanced budget and careful oversight of taxpayer dollars are valued by rating agencies such as S&P and Moody's.”
Moody's acknowledges in its report that Naperville has a large, diverse tax base and plays a key role in the Chicago regional economy. The report also states the City has a “substantial tax base supported by a diverse commercial sector and an affluent residential base; well-managed financial operations; considerable budgetary flexibility provided by the City's home rule status; and manageable debt levels.” S&P's report was similar, noting the City's strong financial position and managerial practices. S&P's report also stated that it did not expect its ‘AAA' rating to change within two years, as it expects the city to “maintain its strong reserves and continue to benefit from its participation in the diverse Chicago metropolitan area economy.”
The agency reviews also take into account the city's financial policies and management practices. Both agencies commented positively on the actions the City has taken to proactively balance its operations with recession-induced revenue declines. Moody's review suggested the City exhibited “well-managed financial operations,” while S&P assessed Naperville's financial management practices as “strong,” which indicates S&P's view that the City's methods are “strong, well-embedded and likely sustainable.”
The S&P and Moody's ratings were awarded in conjunction with a $19 million general obligation bond sale scheduled for June 28, 2011. This sale was approved by the City Council at its June 21, 2011, meeting and is necessary to fund $19 million of new utility capital improvement projects; $11 million for the electric utility and $8 million for water/wastewater.
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