S&P Global Ratings (S&P) affirmed its A+ rating on general obligation (GO) bonds for the City of St. Louis on June 2. The agency also assigned its SP-1+ rating—the highest rating S&P issues for short-term notes—to the city’s series 2020 tax and revenue anticipation notes (TRANs) and affirmed its A rating on the city’s long-term appropriation debt.
S&P cited the city’s strong financial management greatly improving the city’s financial position over the past several years, strong budgetary flexibility, and very strong liquidity.
However, S&P revised its outlook from stable to negative on the city’s GO and appropriation debt—consistent with the agency’s actions for other government sector issuers—reflecting the challenges of the COVID-19 pandemic.
“Over the past several years, the City of St. Louis has realized a sustained, positive fiscal trajectory by managing expenses, developing diverse revenue streams, and building up its reserve funds,” Comptroller Darlene Green said in a statement.
“Working together, we can continue to meet our financial obligations and provide essential city services. Even as the nation faces an uncertain economic outlook due to the COVID-19 coronavirus pandemic, the City of St. Louis is positioned to weather the financial challenges that lie ahead.”