News Release Financial Service Upgrades Rochester’s Fiscal Outlook

City of Rochester

News Release

S&P upgrades Rochester to ‘positive outlook,’ joins Moody’s to affirm excellent credit ratings

(Friday, July 10, 2015) – Mayor Lovely A. Warren announced today that Standard & Poors Ratings Services (S&P) has upgraded Rochester’s fiscal outlook from stable to positive and has joined Moody’s Investors Service in assigning the City with excellent credit ratings on $91 million in long- and short-term bonds.

“Once again the City of Rochester has proven to be a good steward of the taxpayers’ resources, which helps us make strategic investments that lead to more jobs, safer, more vibrant neighborhoods and provide all of our children with a quality education,” said Mayor Warren. “These reports prove what so many of us already know: the City of Rochester is an excellent investment.”

In an analysis released Thursday, S&P upgraded its outlook on the City’s long-term debt from stable to positive “based on the City’s strong management conditions, which have led to stable budgetary performance and maintenance of very strong budgetary flexibility.”

S&P assigned the City with an A+/positive rating on $59.6 million in general obligation bonds (long term) and a SP-1+ on the $31.6 million in bond anticipation notes (short-term).

Moody’s Investors Service also released an analysis Thursday and affirmed its stable outlook for the City. Moody’s assigned Rochester with Aa3 ratings on the same general obligation bonds and a MIG 1 on the bond anticipation notes.
All of these ratings are among the top tier of ratings assigned by the services.

Both services cited the City’s fiscal policies as rationale for the excellent ratings in analyses released Thursday, July 9.

“The stable outlook reflects our belief that the City’s cash and reserve position will remain satisfactory due to proactive management initiatives despite a number of financial pressures,” Moody’s wrote in its analysis. Moody’s also noted: “Strong fiscal management has led to closure of budget gaps and maintenance of healthy reserves.”
S&P also cited “Strong management, with good financial policies and practices.”

The bonds will be used on such projects as school buildings, water-supply infrastructure and road construction.

-30-

News Media: For more information, contact Press Officer Jessica Alaimo at 428-7135.