STANDARD AND POOR’S FINDS CONTINUED CONFIDENCE IN SARNO ADMINISTRATION
May 27, 2010 – Last week, Mayor Domenic J. Sarno, Chief Administrative and Financial Officer Lee Erdmann and the City’s senior Finance Officials traveled to Boston to meet with bond rating agencies regarding the City’s bond rating. Mayor Sarno and his financial team presented details of the City’s strong financial management practices and other Springfield initiatives such as Mayor Sarno’s economic development, debt and capital management strategies.
The City received word today that Standard and Poor’s has raised its issuer credit rating to ‘A-‘ reasoning that the City has made continued progress toward rebuilding its reserve levels and has improved financial oversight due to a new financial management team that took control of the City’s finances after a period of Commonwealth oversight. Standard and Poor’s also assigned its ‘AA-‘ long-term rating to Springfield’s state-qualified general obligation (GO) qualified school construction bonds (QSCB) and affirmed its ‘AA-‘ underlying rating (SPUR) on the City’s previously issued state qualified debt. Last year, Standard and Poor’s raised the City’s bond rating to ‘BBB+’
“This is terrific news for the City of Springfield,” said Mayor Sarno. “To get this upgrade, especially during a very fiscally rocky time for the entire country demonstrates that the City continues to make significant strides which has allowed Standard and Poor’s to find the confidence in our City to grant this upgrade,” stated Mayor Sarno. “This will translate into significant cost savings for the City moving forward which is increasingly important as our City continues to deal with its current financial situation,” said Sarno.
The City was recently upgraded by Moody’s due to a recalibration of the rating system to A2. It was only a short time ago that the City was dealing with junk bond status.
Springfield Finance Team's 2010 bond rating presentations >>
Standard and Poor's response >>