Standard & Poor’s Issues AAA Bonding Rating for Albuquerque
March 11, 2013
Albuquerque – Standard & Poor’s (S&P), the major independent rating agency just issued a AAA bond rating to the City of Albuquerque which includes the Paseo del Norte/ I-25 project and the upcoming October General Obligation Bonds.
"We’ve worked diligently to be fiscally responsible over the last three years, and it’s paying off for the citizens of Albuquerque," said Mayor Richard J. Berry. “I’m pleased the City of Albuquerque has maintained its AAA bond rating."
When S&P issues a AAA bond rating, this indicates the City is strong, and will result in lower interest rates for the tax payers of Albuquerque. The highest rating issued by S&P is AAA. The grades AAA, AA, and A are considered "investment grade" or of high quality.
"Cities and agencies around the country have struggled with their bond ratings during these difficult economic times. It’s a testament to the great team that we put together here at the City that we have retained our AAA bond rating. We will continue on a path of fiscal responsibility," commented Mayor Berry.
The ratings reflect what S&P views as Albuquerque's:
Strong financial management, multi-year planning, and maintenance of what S&P regards as strong general fund balances, despite previous declines;
Low overall debt and rapid amortization of principal with moderate future capital needs.
Albuquerque's general fund posted a $6 million operating surplus after transfers in fiscal year 2012 to end what S&P consider a strong 14% of expenditures.
Over the years credit ratings have achieved wide investor acceptance as convenient tools for differentiating credit quality.