Standard & Poor’s Ratings Services assigned its AA+ long term rating, and stable outlook, to the Decatur City Urban Redevelopment Agency’s $12.6 million revenue bonds series 2010A. At the same time, Standard & Poor’s raised its underlying rating (SPUR) and issue credit rating (ICR) on the city’s debt outstanding to AA+ from AA.
According to S&P’s credit analyst Richard Marino, the upgrade on the SPUR and ICR reflects what they view as the city’s demonstrated ability to effectively manage its fiscal operations and maintain a strong financial position through the last recession and the current slower-than-typical economic growth.
The AA+ rating also reflects their view of Decatur’s:
- Diverse employment base
- Stable and very diverse primarily residential tax base
- Strong wealth and income levels
- Extremely strong per capita market values and
- Good management policies and practices
The stable outlook reflects their opinion of Decatur’s ability to “maintain its strong fiscal profile, stable tax base, and strong wealth and income levels in the next two years.” They also expect the city’s “capable management team will continue to maintain good management policies and practices.”
The series 2010A bonds are special limited obligations of the Urban Redevelopment Agency payable from pledged revenues. Proceeds of this issue will be used to pay all or a portion of the costs of acquiring, constructing, equipping, renovating, and improving city facilities including Fire Station #1, Decatur Recreation Center, and the Public Works facility.
