City credited for stability of bonds/strong financial profile
February 28, 2014
City of Albuquerque officials were notified yesterday by Standard & Poor's Ratings Services (S & P) that they have affirmed the city’s 'AAA' rating, with a stable outlook, relating to the city’s general obligation (GO) bonds based on Standard & Poor's local GO criteria, published Sept. 12, 2013, on RatingsDirect. The ‘AAA’ rating indicates an extremely strong capacity to meet financial commitments.
According to S & P, the rating reflects their opinion of Albuquerque's:
- Strong economy, which is part of a broad and diverse economy centered on, and anchored by, strong links to government employment, which has allowed it to manage operations successfully through previous economic cycles;
- Very strong management condition with "strong" financial management policies, under S & P Financial Management Assessment (FMA) methodology, guiding finances;
- Strong budgetary flexibility when accounting for reserves held in the committed fund, which is committed for minimum reserve purposes;
- Strong budgetary performance;
- Very strong liquidity for operations and debt service; and
- Adequate debt and contingent liability position, supported, in part, with rapid amortization.
- The city's full-faith-and-credit pledge and an unlimited property tax pledge secure the GO bonds.
Mayor Richard J. Berry was pleased to learn the news. “We have made it a priority from the beginning to institute sound financial management practices at the City of Albuquerque and this rating is a testament to the fact that we continue to run an efficient government in which we are good stewards of taxpayer resources. It also reaffirms that our local economy is strong and trending in a positive direction and if we remain focused on creating a business environment that encourages entrepreneurism and job growth, we will continue to see progress,” said Mayor Berry