Portland gets highest credit rating from Standard & Poor’s
The City of Portland has received the highest possible credit rating from one of the largest and best-known credit rating agencies in the United States.
Standard & Poor’s Global Ratings raised its credit rating on all of Portland’s general obligation debt to AAA over the weekend, the city announced Thursday. The city’s credit rating was AA+. The S&P rating is a credit rating that describes the general creditworthiness of a company or government entity that issues debt.
A higher credit rating helps a municipality borrow money by issuing bonds because investors can be assured that interest will be paid and the risk of default is low. The AAA rating is expected to reduce borrowing debt on Portland’s bond servicing costs, create additional demand for City of Portland municipal bonds, and could potentially save the city millions of dollars in years to come. , the city said in a statement.
S&P attributed the credit rating upgrade to the continued growth of the local economy, strong financial management and financial policies, and well-managed debt metrics. AAA represents the highest measure of creditworthiness a town or city can receive from S&P.
“It will save the city millions of dollars in debt servicing costs and Portland will join a small handful of New England communities that hold AAA ratings,” Portland Chief Financial Officer Brendan T said. O’Connell, in an email. O’Connell said the credit rating improvement is only the second improvement in the city’s history, with the last coming in 2017.
“We couldn’t be more thrilled to announce this incredibly important milestone,” he said. “Upgrading to AAA will save local property taxpayers millions of dollars on future debt issuance and demonstrates how well we are taking our fiscal management responsibilities.”
Municipal officials said the reduction in debt servicing costs should have a significant impact on the municipal budget. The city estimates the new rating will save Portland between $520,000 and $780,000 on the sale of municipal bonds of $51.9 million this week.
“It is wonderful to receive this prestigious AAA rating from S&P,” Portland Mayor Kate Snyder said in a statement. “This reinforces the excellent work done by our finance staff to raise the profile of the town and highlights the growth we have had in the local economy over the past few years.
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