City of Prescott Receives Favorable Bond Rating, Outlook Stable
The City of Prescott received a strong bond rating this month from Fitch Rating's, Inc., consistent with the prior ratings by the other two national rating agencies, Moody's and Standard & Poor's.
Fitch affirmed the AA rating on the City of Prescott's general obligation bonds, used for acquisition and development of Watson and Willow Lakes; 2007 Municipal Property Corporation bonds for construction of City facilities; and 2010 Municipal Property Corporation bonds for street projects.
Fitch additionally gave the City a stable ratings outlook.
"A Double A (AA) rating for a City of our size and demographics is very good," said Prescott's Finance Director Mark Woodfill. "Having a solid bond rating saves the citizens money when the City finances capital projects."
Fitch noted several key drivers in their report including: solid financial reserves, strong debt service coverage, continued economic recovery, and low debt burden.
Earlier this year, the City's bond rating and favorable market conditions enabled the 2004 City of Prescott Municipal Property Corporation bond to be refinanced at a savings of $1.2 million to the citizens over the life of the bond.
"The City's fiscal policies and actions are validated by Fitch's affirmation of our bond rating. Maintaining this rating is a testament to our Council and management team, which are focused on keeping the city financially stable, while preserving the excellent quality of life of our unique community," said Prescott Mayor Marlin Kuykendall.
The press release from Fitch Rating's, Inc. is available here