City of Petersburg Bond Rating Upgraded
Petersburg’s A+ bond rating has been upgraded to an A1 from an A2 by Moody’s Investors Service. An A1 rating means that the City has a strong capacity to meet its financial commitments and is subject to low credit risk.
The upgrade also reflects Moody’s view of Petersburg's continued achievement in obtaining a strong and secure financial position, that includes increased reserves and liquidity, such that short-term cash flow borrowing is no longer needed.
"Petersburg’s upgraded bond rating reflects continued growth and economic recovery,” said City Manager March Altman. “Petersburg has a fund balance of approximately $55 million dollars which gives Petersburg the flexibility to move forward with capital projects needed for decades. I commend City Council and Petersburg’s Finance Department headed by CFO Stacey Jordan for making decisions based on sound fiscal management and best practices that have led to creating a strong financial foundation for Petersburg.”
Governance is a key rating factor for Petersburg. This is reflected by the City’s formalized budget and debt policies in addition to proactive management and monitoring of revenue and expenditure performance. The enhanced credit rating brings:
- Lower interest rates;
- Increased borrowing power;
- Economic development interest, and
- Investment opportunities.
“Petersburg’s goal is to achieve a consistent AAA rating,” said Stacey Jordan, Petersburg’s Chief Financial Officer. “Revenues and collections continue to increase, while expenses are down. The City is positioned to continue to grow its fund balance which is essential in achieving and maintaining a high credit rating.”
All City financial statements are examined and certified each year by external auditors.