City of Saint Paul Receives AAA Credit Ratings With Upgraded Outlook
FOR IMMEDIATE RELEASE
February 12, 2020
SAINT PAUL, MN - Today, the City of Saint Paul announced it has received AAA credit ratings from S&P Global and Fitch ratings agencies, including stable outlooks as part of a city bond sale process.
“We work every day to combine sound financial management with critical investments that help residents and businesses succeed,” said Mayor Carter. “Our improved credit rating is important affirmation that this strategy Is serving our city well.”
ABOUT THE RATING PROCESS
As part of an annual bond sale process, the City engages S&P Global Ratings and Fitch ratings agencies to assess the City of Saint Paul’s financial health. Key factors cited by the agencies that contributed to the City of Saint Paul’s AAA credit ratings include:
- Saint Paul has a very strong economy, with access to a broad and diverse metropolitan statistical area (MSA) and a local stabilizing institutional influence;
- The City of Saint Paul government has very strong management, with strong financial policies and practices;
- The City of Saint Paul has adequate budgetary performance, with an operating surplus in the general fund in fiscal 2018;
- The City of Saint Paul has very strong budgetary flexibility, with an available fund balance in fiscal 2018 of 17% of operating expenditures; and
- The City of Saint Paul has very strong liquidity, with total government available cash at 60.6% of total governmental fund expenditures.
This year, bonds went up for competitive sale on February 12. Proceeds will be used to finance various capital projects and equipment purchases, refinance the city's series 2012B bonds for debt service savings and fund the first phases of the Ford Site Redevelopment Project.
Further information on the sales including the credit rating reports and investor presentation materials are available at our investor relations website https://www.stpaulbonds.com.