Standard and Poor’s Upgrades Annapolis to AA+
Annapolis, MD (5-10-13) Annapolis Mayor Joshua J. Cohen announces that Standard and Poor’s has upgraded the City’s rating from AA to AA+.
“Annapolis taxpayers and bond holders should be gratified that Standard & Poor’s has reaffirmed the City’s improved fiscal situation,” Mayor Cohen said. “The S&P analysis attributes their upgrade to the difficult but responsible decisions the City has made over the past three years to put ourselves on solid ground.”
Standard and Poor’s Ratings Services writes:
“Standard & Poor’s Ratings Services raised the rating on Annapolis, Md.’s general obligation (GO) debt one notch to ‘AA+’ from ‘AA’ based on significant cost-cutting and revenue enhancement measures implemented by management within the last three fiscal years, which have dramatically increased the city’s general fund reserve position to levels that far exceed the city’s minimum policy level.”
Standard and Poor’s upgraded the rating for General Obligation bond sales of up to $15.2 million. It will be used for capital improvement projects in the City with the potential of refunding outstanding bonds. At the same time the ratings were upgraded, Standard & Poor's assigned the City a stable outlook.
“We take great pride in the aggressive measures we have taken to achieve our expectations during difficult economic times,” City Manager Michael Mallinoff said. “The City has openly and persistently addressed all concerns the rating agencies put before us, while we continued to offer the quality services that our citizens have come to expect.”
The rating reflects the City's:
- Growing and very diverse property tax base with no taxpayer concentration
- Historically good financial performance, including substantial increases in reserves in fiscals 2011 and 2012 due to a number of measures implemented by management to achieve structural balance in the budget following years of general fund drawdowns
- Low-to-moderate debt with manageable additional capital needs
- Local economy, anchored by state and federal government and maritime-related tourism with access to, and participation in, the Baltimore and Washington metropolitan areas