City Of Johnston: JOHNSTON'S OUTSTANDING BOND RATING IS AFFIRMED BY S&P

Press release from the City of Johnston:

June 1, 2021

The City of Johnston is pleased to announce the Standard and Poor's (S&P) Global Ratings has assigned its AA+ long-term rating to Johnston’s 2021A General Obligation (GO) bonds and affirmed its AA+ long-term rating for the City's existing GO debt, and its 'AA' long-term rating on the City's series 2020A annual appropriation GO bonds. 

"The City has maintained the AA+ rating for the past 12 years," said Assistant City Administrator/Finance Teresa Rotschafer. "As our City leaders strategically plan for the future, they ensure it is done so in a fiscally responsible manner. We always pride ourselves in prioritizing projects while ensuring they align with our financial practices to maintain a strong financial position."  

The S&P report noted the following:

• A very strong economy, with access to a broad and diverse MSA;
• Strong management, with good financial policies and practices under our Financial Management Assessment (FMA) methodology;
• Adequate budgetary performance, with an operating deficit in the general fund but an operating surplus at the total governmental fund level in fiscal 2020;
• Very strong budgetary flexibility, with an available fund balance in fiscal 2020 of 35% of operating expenditures, and the flexibility to raise additional revenues despite statewide tax caps;
• Very strong liquidity, with total government available cash at 74.7% of total governmental fund expenditures and 1.9x governmental debt service, and access to external liquidity that we consider strong;
• Very weak debt and contingent liability profile, with debt service carrying charges at 40.1% of expenditures and net direct debt that is 311.8% of total governmental fund revenue; and
• Strong institutional framework score.

Standard & Poor's is the world's leading index provider and the foremost source of independent credit ratings. To view the full rating report, click here.  

This press release was produced by the City of Johnston. The views expressed here are the author’s own.