The city of Columbus has received notification from Standard and Poors Global Ratings that its bond rating has been raised from "AA-" to "AA."
S&P Global Ratings has raised its long term rating and underlying rating on Columbus' combined revenue debt and views the outlook for the rating as stable.
This upgrade is very positive and reflects well on the quality of the city and its ability to control and meet its debt obligations. In the opinion of the rating firm the upgraded rating "reflects, in our view, the combination of a very strong enterprise risk profile and very strong financial risk profile."
The rating assessment was conducted relative to the proposed issuance of bonds for the wastewater treatment plant expansion project currently underway and for sanitary sewer lift station replacements to be constructed later this year. A copy of the rating report accompanies this release.
What does the upgraded rating mean to Columbus? The AA rating is expected to save city taxpayers thousands of dollars in borrowing costs. The higher rating tells investors that the bonds offered by the city are low risk, making them more attractive to buyers and lowering the interest rates that the ratepayers pay in return. The rate upgrade is an expression of the importance of sound fiscal management of the city by its staff and its elected officials.