“That’s the best update I have,” Burton told City Council members and city leaders Friday. “That’s fantastic news.”
S&P credit analyst Emma Steyaet said the raised rating reflects the company’s “positive view” of Monroe’s growing economy and its subsequent increases in income tax revenue while debt burdens have moderated.
She said the city’s “stable outlook” reflects the S&P’s expectations that, while pledged revenues will continue to fluctuate with economic cycles and further debt issuance, the city’s tax base will likely continue to provide very strong debt service coverage.
The AA+ rating could eventually rise to the highest rating — AAA — or drop depending on the income tax collections, she said.
City Manager Larry Lester said it was Burton’s “story to tell,” but Burton stressed the bond rating improvement wasn’t a finance department accomplishment. Instead, he said, it was “a truly city-wide, team effort” from City Council, administration and down.
The “biggest benefit” of the improved rating means future issuance through the S&P would result in lower interest rates that would save taxpayers and the city money.
Burton said city leaders updated S&P in July during a phone call, then were notified Thursday the rating was increased.
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