ST. LOUIS—St. Louis City's $25M (GO) general obligation bonds, series 2016A has been rated by both Moody's and S&P Global rating agencies. The bonds are expected to go to market next month to make funds available for firefighting equipment and other essential needs.
The Moody's agency downgraded the city yesterday, while S&P Global reaffirmed the city's A+ credit rating after rating the same GO bonds.
Both agencies noted the city's narrow reserve levels and high debt profile.
S&P Global viewed the city's strong fiscal management, adequate budget performance, and very strong liquidity as positive factors for reaffirming the A+ credit rating. Moody's on the other hand, views the city's liquidity as weak and a contributing factor to the downgrade. However, on the positive side Moody's viewed management's adoption of a ten year financial plan and taking steps to implement recommendations as a move in the right direction.
"The city's strong fiscal management team has implemented a financial strategy to grow its reserves and diversify and increase its revenues. The city will seek legislation to further improve its financial position," said Comptroller Green.
The city remains in the 'A' category for overall ratings and the majority of outstanding bonds with all three credit rating agencies Moody's, S&P Global, and Fitch.
The Honorable Darlene Green, comptroller of the City of St. Louis is the chief fiscal officer of the city and is charged with safeguarding the city's credit rating and with protecting taxpayer dollars. Visit www.stlouis-mo.gov/comptroller to learn more about the Office of the Comptroller.
Public Information Officer to the Comptroller
Office Phone: (314) 613-7360
Office of the Comptroller
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