City earns high marks from national bond rating companies 

(March 26, 2008) - Oklahoma City’s strong financial position, conservative financial management practices, and low debt earn it high ratings from Standard & Poor’s and Moody’s Investor Service, two independent agencies that rate the financial strength of municipal bonds.

Standard & Poor’s notified the City that it had assigned its AA+ rating to Oklahoma City’s series 2008 general obligation bonds citing the City’s consistently strong financial performance and position.  Moody’s also affirmed its Aa1 rating of City bonds this year.  Both ratings are one level below the agencies’ highest credit rating.

“The high ratings of AA+ and Aa1 are signs of our financial stability, good management systems and a strong set of fiscal policies established by the City Council,” City Manager Jim Couch said.  “The City’s elected officials and management staff are united in our commitment to maintaining the financial integrity and strong financial position of the City.”

The high ratings mean lower interest rates the City pays to sell bonds to fund major capital projects like streets, sidewalks and trails and park improvements.  The less the City pays in interest the more there is to spend on bond projects.

The high ratings also show the national bond rating agencies’ confidence in the city’s investment climate.  Standard & Poor’s stated the ratings reflect the City’s:

• Diverse, expanding regional economy base that serves as Oklahoma’s economic engine;
• Significant ongoing redevelopment in the downtown area;
• Consistently strong financial performance and position, coupled with conservative financial management practices; and
• Low debt levels, coupled with a large, but affordable capital improvement program.

“These ratings are objective measures of how the City is managing taxpayer dollars,” City Manager Jim Couch said.  “Like a personal credit rating, it says we’re making the right decisions.”

Bond ratings are issued before a city, state, or other public body can issue bonds to finance major capital projects.  The Council approved the City’s 2008 general obligation bond issue on Tuesday.