Salisbury’s bond rating improves
Standard & Poor’s has upgraded the city of Salisbury’s general obligation bonds one notch from A+ to AA-. The rating agency also upgraded the city’s certificates of participation one notch to A+ from A.
The outlooks regarding both are stable, the city said in a press release.
A city’s bond rating is a key measure of financial health. It also influences the cost of borrowing money.
Two years ago, the city of Salisbury was spending more than it was taking in. S&P stated in its ratings report that over the last two years the city took in more than it spent, significantly strengthening its financial foundation.
S&P elaborated in its ratings report that, “In our opinion, financial position and performance have grown significantly stronger over the last two fiscal years due to management’s actions, including raising revenue and budgeting expenditures more conservatively.”
“We appreciate City Manager Doug Paris and his team’s strong financial leadership over the last two years, “ Mayor Paul Woodson said in the press release. “He has produced solid results.”
The S&P report also commented on the city’s level of outstanding debt stating, “Debt is, in our opinion, a very low $998 per capita, or 1 percent of market value.”
Regarding future outlook, S&P gives the city a stable outlook which reflects the opinion “that Salisbury will likely maintain its very strong finances based on its conservative budgeting practices,” the press release said.