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Wall Street Awards Coral Springs Highest Credit Ratings
Thursday, August 18, 2016
Wall Street has again affirmed Coral Springs’ AAA General Obligation Bond credit rating. Both Fitch Ratings and Standard & Poor's (S&P) have given the AAA rating with a stable outlook to the City's General Obligation Bonds. The AAA rating is the highest bond rating an organization can earn.
According to Fitch, “Coral Springs' 'AAA' rating reflects Fitch's view of the city's exceptional financial capacity to address challenges associated with typical cyclical economic fluctuations and a low long term liability burden."
S&P praised Coral Springs for having a strong economy, very strong management, and very strong debt and contingent liability position. S&P noted that "The rating also reflects our opinion that Coral Springs' well-embedded management practices and policies will likely sustain at least strong budgetary performance, and maintain the city's very strong reserves and liquidity."
“Once again, we’re proud to have Wall Street agencies recognize the City’s commitment to long-range planning,” Mayor Skip Campbell said. “Both credit ratings are a reflection of the City's strong management and it greatly benefits our residents in the long run."
Much like an individual’s credit rating, a bond rating is a measure of an organization’s credit worthiness. AAA bond ratings represent the highest quality investment with the smallest degree of risk. As an AAA rated city, the City of Coral Springs has saved millions of dollars in interest.
In addition, both agencies have assigned a rating of 'AA+' to the City's 2016 Special Obligation Bonds. The City will be competitively offering these two bonds in an approximate amount of $28.5 million, on Tuesday, August 23 to finance a portion of the cost of the City's new Municipal Complex, parking garage and related site and infrastructure improvements.
“The City of Coral Springs takes great pride when it comes to managing our taxpayers' dollars," City Manager Erdal Donmez said. "We don't take this responsibility lightly, and it is encouraging to know that Wall Street recognizes our efforts."