Peoria, Ariz. (Jan. 30, 2009)
– Based upon the city’s strong financial practices, Peoria received an upgrade
of its general obligation bonds yet again. This upgrade comes just in time for
the upcoming general obligation bonds scheduled for competitive sale on Feb. 3.
The bond-rating
increases mean savings in debt service to the city. “This is excellent news as
it directly impacts the interest we pay on new debt,” said Peoria's chief
financial officer, Brent Mattingly. Peoria will save an estimated $100,000 on
the current bond sale, and approximately $2.4 million on future general
obligation debt issues.
Each of the three major
bond-rating agencies gives Peoria high marks:
• Fitch Ratings:
Maintained General Obligation bond rating at “AA” and upgraded outstanding
Highway User Revenue Fund bonds from “A+” to “AA-.”
• Moody’s Investors
Service: Maintained General Obligation bond rating at “Aa2.”
• Standard & Poor’s:
Increased General Obligation bond rating from “AA“ to “AA+” and upgraded
outstanding Revenue Bonds from “AA-” to “AA.”
According to the most
recent rating agency reviews, the solid 'AA' rating reflects the city's sound
financial performance, strong fiscal policies, and accompanying monitoring,
reporting and forecasting practices. They also referenced the city’s strong
reserve levels and management’s ability to act quickly to make budgetary
adjustments in response to the weak economy.
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Media Contacts:
Brent Mattingly, Chief Finance Officer, 623-773-7134
Sherine Zaya, Public Information Officer, 623-773-7338
