Mayor Dan Sullivan announced today that the rating agency Standard & Poor’s has increased the Municipality’s general obligation rating from AA to AA+.
Earlier this month Mayor Sullivan, Chief Fiscal Officer Lucinda Mahoney and representatives of the Municipality’s financial advisor, First Southwest Company, met with the S&P rating analysts to review the Municipality’s finances in anticipation of a general obligation bond issue in September. At that meeting they presented a comprehensive overview of the Municipality’s finances and management as well as the state of Anchorage’s economy and its relationship to the entire State of Alaska. Mayor Sullivan made the pitch for a credit rating increase for the Municipality in light of many years of sound fiscal and management policies and the solid local economy.
S&P responded and noted in their report the “strong and improved financial position and policies, as well as the continued diversification of the economic base." The report also noted the Municipality’s:
* Central role in the state and regional economy
* Very strong income levels
* Stable property tax base
* Strong fund balances
Chief Fiscal Officer Mahoney commented, “We are delighted that S&P has recognized and rewarded Anchorage for the improvements in the Municipality’s finances over the past several years."
Mayor Sullivan also noted that, “the AA+ rating will save taxpayers money in the form of reduced interest expense on the bonds that the Municipality issues going forward... We look forward to a successful
bond sale next month."