Mar 12, 2014
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Standard & Poor’s has upgraded Richmond’s bond rating based on the strength of the local economy and the city’s financial performance.

The upgrade from AA-  to A+ should lead to lower interest rates and less cost to the city when it borrows money in the future.

“Typically, higher bond ratings mean that the city’s cost of borrowing goes down,” Councilman Tom Butt said in his e-forum about the rating.

S&P announced the rating upgrade last week, at the same time bumping up the city’s lease rating.

S&P revised the way it rates local governments last year. The new method places most of the weight of a rating on the strength of the local economy, a little less on city management and even less on its budgetary performance, budget flexibility and liquidity.

In its assessment of Richmond, S&P cited the city’s economic condition, its adequate budget performance and its financial flexibility. S&P also recognized the city’s small debt and liabilities profile.


About the Author

Mike Aldax is the editor of the Richmond Standard. He has 13 years of journalism experience, most recently as a reporter for the San Francisco Examiner. He previously held roles as reporter and editor at Bay City News, Napa Valley Register, Garden Island Newspaper in Kaua’i, and the Queens Courier in New York City.