Standard & Poor’s (S&P) Rating completed an independent review of the Town’s credit rating, affirming the AA+ rating with a stable outlook. A rating of AA+ is just one notch below the highest possible rating.
“This rating is really an indicator that the Town has been, and continues to be, in a strong financial condition,” said Queen Creek Mayor Julia Wheatley. “As a Council, we are committed to making financially sound decisions while also meeting the needs of a growing community. It is so important that we continue to invest in our priorities like public safety and infrastructure, while also doing so in a financially responsible manner.”
The Town has two ratings with S&P, one for the Town's overall credit, referred to as the Issuer Credit Rating (ICR), and one for debt issued with excise taxes as the payment pledge for the debt – both ratings are AA+ with a stable outlook.
“The reports affirm that the Town is in solid financial condition, and we continue making progress on our path to a 'AAA' rating,” said Chief Financial Officer / Deputy Town Manager Scott McCarty. “The Town Council has made a series of key financial policies and practices that have resulted in our strong financial condition. As a young community that is growing at a rapid rate, the report notes the debt that has been issued to provide infrastructure needs – and articulates that the burden is manageable due to sound financial policies and smart decisions.”
The Town has received a series of credit rating increases over the past 20 years. S&P evaluates these categories in determining a bond rating: economy, financial performance, reserves and liquidity, management, and debt and liabilities.
S&P indicated several factors contributed to the affirmation of the bond rating including the Town's rapidly expanding economy, including LGES battery manufacturing facility; effective and prudent financial management practices and policies, including comprehensive multi-year planning; expected continued population growth; the Town’s well-funded pensions; our history of positive financial results of revenues exceeding expenses annually in the Operating Budget; and proactive efforts to secure water supplies.
For more information about the report, visit StandardandPoors.com.
