News Column

Spring Hill receives S&P rating

August 17, 2014

By Kate Coil, The Daily Herald, Columbia, Tenn.



Aug. 17--Standard and Poor's has announced its bond rating for the city of Spring Hill, which is higher than city leaders expected.

The city received a AA/Stable rating from S&P, citing the city's strong economy, proximity to Nashville, strong management and good financial practices, very strong budgetary flexibility, very strong liquidity and strong debt and contingent liabilities.

City Finance Director Jim Smith announced the rating to the Board of Mayor and Aldermen during its work session meeting Monday.

Smith said the AA rating is higher than the city anticipated it would receive.

"You have to keep in mind our financial history is essentially five years old," he said. "We thought a AA minus or even an A plus would be good. It is beyond great news to get this rating the first time out of the stable."

Smith previously told The Daily Herald the city went to S&P for the rating because the firm is generally seen as more friendly to government entities.

Factors like a city's debt, how it manages its funds and how well-known the city is can impact how high a bond rating the municipality receives, Smith said. How well a city is doing also affects how much interest the city has to pay back to investors, he said.

With the rating attained, the city can now move forward with municipal bonds being sought to finance parks, roads and other needed infrastructure projects.

___

(c)2014 The Daily Herald (Columbia, Tenn.)

Visit The Daily Herald (Columbia, Tenn.) at www.columbiadailyherald.com

Distributed by MCT Information Services


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Daily Herald (Columbia, TN)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters