St. Louis Park Receives Highest Credit Rating

The Standard and Poor’s Rating Services, one of the nation’s leading credit rating agencies, assigned its AAA rating to the City of St. Louis Park, Minn.’s series 2016A general obligation (GO) bonds.

At the same time, Standard and Poor’s affirmed its AAA rating on the city’s existing GO debt, with a stable outlook for both ratings, according to a news release.

AAA is the highest credit rating issued by Standard and Poor’s, indicating the city’s capacity to meet its financial commitment is extremely strong.

St. Louis Park is one of only 19 cities in Minnesota to which Standard and Poor’s assigned this top rating.

In its report, Standard and Poor’s stated, “The stable outlook reflects our view that St. Louis Park will maintain its strong budgetary performance and very strong budgetary flexibility, supported by very strong management condition"

"The city’s very strong economy, including its access to and participation in the Twin Cities metropolitan area, adds stability to the rating in part by moderating the impact of local economic fluctuations.”

The $10 million in series 2016A GO bonds are being used to finance improvements for the city’s indoor and outdoor recreation center projects.

A city’s credit rating is similar to a person’s credit score. A high rating, like the city of St. Louis Park’s, makes issuing bonds and borrowing money less expensive. It also helps attract public and private investment because it assures potential investors the city can pay its bills and continuing providing vital city services at a high level.

Cities issue general obligation (GO) bonds to finance infrastructure needs, i.e., it’s a debt-financing mechanism to provide capital for projects.

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