Cal City Earns Stable “A” Rating From Global Ratings Firm
S&P foresees no change in rating for at least the next two years
(CALUMET CITY) JULY 28, 2017 – S&P Global Ratings this week assigned its ‘A’ long-term rating to Calumet City’s series 2017A general obligation (GO) bonds. At the same time, S&P affirmed its ‘A’ ratings on the city’s existing GO debt. The financial ratings firm called the City’s overall economic outlook “stable.”
The series 2017A bonds will be used to finance street and sidewalk construction, repairs, and capital improvements throughout the City.
“We have weathered some tough economic storms and have come out of it ready to move forward. Property values will continue to grow and come back as we meet problems head-on and attract new homeowners and businesses,” said Mayor Michelle Markiewicz-Qualkinbush.
The favorable “A” rating bestowed on the City means that it pays less interest to finance public improvements, allowing it to aggressively tackle street and sidewalk projects. In turn, more areas can be addressed and the cost paid off much sooner.
In comparison, the City of Chicago has a Ba1 general obligation (GO) rating. The State of Illinois’ rating is Baa3.
Among the highlights of the report:
- The City has “strong budgetary flexibility”
- The City has “strong reserves” and “very strong liquidity”
- The City earned a “strong institutional framework” score
- Road and sidewalk improvement bonds will be repaid in only 10 years.
While facing “weak economy” challenges along with the rest of the region, Calumet City has maintained a balanced budget which in 2016 finished with an operating surplus.