S&P Global Ratings (S&P) assigned its A+ longterm rating to the City of St. Louis series 2018 general obligation (GO) bonds. The agency also affirmed its A+ rating on the city’s existing GO debt and its A rating on the city’s existing appropriation debt, with a stable outlook on all ratings.
Approved by St. Louis voters during the August primary election, the series 2018 GO bonds are structured such that no tax increase is necessary to meet the debt service requirements.
“With this bond issuance, the City of St. Louis is demonstrating a commitment to fully using current tax levy resources before asking to increase property taxes,” said Comptroller Darlene Green. “This aligns with our 10-year financial strategy to leverage no-tax-increase bonds, when possible, as a way for the city to better sustain routine capital investment in critical public safety and infrastructure needs.”
S&P viewed the city’s fiscal management, budget performance and strong liquidity as positive factors for the A+ credit rating for the City of St. Louis, stating that “management has demonstrated a capacity to maintain structural balance without significantly disrupting operations and continues to make a concerted effort to increase available general fund reserves.”
Pricing for the series 2018 GO bonds is scheduled for October 30, with a scheduled closing date of November 15.