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National Bond Rating Agencies Recognize Cuyahoga County's Strong Fiscal Management
Contacts:
Jeane’ Holley: (216) 698-2544 / (216) 640-0821
Cleveland, Ohio - Last month County Executive Armond Budish and his management team made presentations to each of the two leading ratings agencies, Moody’s Investors Service and Standard & Poor’s. Despite the serious financial challenges and high debt burden inherited at the outset of 2015, the County has been recognized by the agencies for adopting “strong fiscal management practices” and a sustainable balanced 2016-2017 budget. As a result, the County’s strong bond ratings have been reaffirmed by both agencies.
Moody’s assigned a rating of Aa1 to the Public Square bonds, secured by the County’s sales and use tax and Moody’s also updated the existing sales tax bond rating of Aa1 and its general obligation rating, also at the Aa1 level. Each of those ratings is the second highest possible rating on Moody’s scale. Standard and Poor’s rating the Public Square sales tax bonds AAA, as well as updating the rating on previously issued bonds at AAA, its highest possible rating. Standard and Poor’s rates the County’s outstanding general obligation bonds at AA, its third-highest rating category. (Standard & Poor’s did not update the County’s general obligation bond rating in conjunction with the Public Square issuance.).”
Moody’s noted that, “We expect the County’s financial position to remain healthy supported by solid fiscal management policy” and commended the County Executive and Council on their 2016-2017 budget with “balanced operations.”
Moody’s also stated that the ratings could move down in the future with “material growth in the county’s direct debt burden.” To protect the County’s ratings and financial future, the County Executive and Council are passing their new budget without any new borrowing.
County Executive Armond Budish stated: “I am extremely gratified that the leading bond agencies have maintained our strong bond ratings, recognizing that we have dealt firmly and immediately with our significant inherited budget deficit and debt problems. I also thank County Council for their collaboration in adopting a strong budget and a new culture of financial discipline.”
“We are very pleased with the rating we received for our sales tax bond issue” said Fiscal Officer Dennis Kennedy, “I believe the ratings agencies see strong indications of long term stability in the County government and have recognized the efforts of the Executive and Council to promote sound financial management in all aspects of our current and future operations.”
Jeane’ Holley: (216) 698-2544 / (216) 640-0821
Cleveland, Ohio - Last month County Executive Armond Budish and his management team made presentations to each of the two leading ratings agencies, Moody’s Investors Service and Standard & Poor’s. Despite the serious financial challenges and high debt burden inherited at the outset of 2015, the County has been recognized by the agencies for adopting “strong fiscal management practices” and a sustainable balanced 2016-2017 budget. As a result, the County’s strong bond ratings have been reaffirmed by both agencies.
Moody’s assigned a rating of Aa1 to the Public Square bonds, secured by the County’s sales and use tax and Moody’s also updated the existing sales tax bond rating of Aa1 and its general obligation rating, also at the Aa1 level. Each of those ratings is the second highest possible rating on Moody’s scale. Standard and Poor’s rating the Public Square sales tax bonds AAA, as well as updating the rating on previously issued bonds at AAA, its highest possible rating. Standard and Poor’s rates the County’s outstanding general obligation bonds at AA, its third-highest rating category. (Standard & Poor’s did not update the County’s general obligation bond rating in conjunction with the Public Square issuance.).”
Moody’s noted that, “We expect the County’s financial position to remain healthy supported by solid fiscal management policy” and commended the County Executive and Council on their 2016-2017 budget with “balanced operations.”
Moody’s also stated that the ratings could move down in the future with “material growth in the county’s direct debt burden.” To protect the County’s ratings and financial future, the County Executive and Council are passing their new budget without any new borrowing.
County Executive Armond Budish stated: “I am extremely gratified that the leading bond agencies have maintained our strong bond ratings, recognizing that we have dealt firmly and immediately with our significant inherited budget deficit and debt problems. I also thank County Council for their collaboration in adopting a strong budget and a new culture of financial discipline.”
“We are very pleased with the rating we received for our sales tax bond issue” said Fiscal Officer Dennis Kennedy, “I believe the ratings agencies see strong indications of long term stability in the County government and have recognized the efforts of the Executive and Council to promote sound financial management in all aspects of our current and future operations.”
