S&P Affirms ‘A+’ Rating On St. Louis Go Bonds

Press release from the City of St. Louis:

June 2, 2020

(ST. LOUIS – June 2, 2020) Today S&P Global Ratings [www.spglobal.com] (S&P) affirmed its ‘A+’ rating on general obligation (GO) bonds for the City of St. Louis. The agency also assigned its ‘SP-1+’ rating to the city’s series 2020 tax and revenue anticipation notes (TRANs)—the highest rating S&P issues for short-term notes—and affirmed its ‘A’ rating on the city’s long-term appropriation debt.

“S&P Global’s affirmation of St. Louis’s ‘A+’ rating on our existing GO bonds and its issuance of an ‘SP-1+’ on our short-term notes is a strong vote of confidence in the City of St. Louis,” said Comptroller Darlene Green.

In its statement, S&P cited the city’s strong financial management greatly improving the city’s financial position over the past several years, strong budgetary flexibility, and very strong liquidity.

“Over the past several years, the City of St. Louis has realized a sustained, positive fiscal trajectory by managing expenses, developing diverse revenue streams, and building up its reserve funds,” said Comptroller Green.

“Working together, we can continue to meet our financial obligations and provide essential city services. Even as the nation faces an uncertain economic outlook due to the COVID-19 coronavirus pandemic, the City of St. Louis is positioned to weather the financial challenges that lie ahead,” said Comptroller Green.

S&P revised its outlook from ‘stable’ to ‘negative’ on the city’s GO and appropriation debt—consistent with the agency’s actions for other government sector issuers—reflecting the challenges of the COVID-19 pandemic.

Comptroller Darlene Green is the chief fiscal officer of the City of St. Louis and is charged with safeguarding the city’s credit rating and with protecting taxpayer dollars. She is the recipient of the 2019 Women in Public Finance Lifetime Achievement award. Visit www.stlouis-mo.gov/comptroller to learn more about the Office of the Comptroller.

This press release was produced by the City of St. Louis. The views expressed here are the author’s own.