For the Reporter
Standard & Poor’s Ratings Services has raised its long-term rating and underlying rating to “AA+” from “AA” on Kent’s bonds.
The ratings affect Kent’s outstanding general obligation (GO) bonds, the Kent Special Events Center Public Facilities District’s series 2008 taxable special events center revenue bonds and special events center sales tax bonds, to which the city has provided GO credit enhancement under a contingent loan and support agreement.
Standard & Poor’s also assigned its “AA+” long-term rating to the city’s series 2016 limited-tax GO refunding bonds.
The outlook is stable, the report said.
“The rating action is based on our view of economic growth and expenditure management that has supported positive general fund net results and growth in available reserves,” said Standard & Poor’s credit analyst Benjamin Geare. “This has strengthened our confidence that the city will remain in compliance with its reserve policy and has a positive effect on our view of the city’s management overall. To a lesser extent, the upgrade reflects a gradual improvement in the speed of the city’s debt retirement schedule and our view of the city’s debt profile.”
The ratings reflect Standard & Poor’s assessment of the following factors for the city: strong economy; very strong management; strong budgetary performance; very strong budgetary flexibility; very strong liquidity; strong debt and contingent liability position; and adequate institutional framework score.
To learn more, visit standardandpoors.com.
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