Rating Updates for Genesee County from Standard & Poor’s and Moody’s
Commissioner Mark Young, Chairperson of the Genesee County Finance Committee, and County Controller Keith Francis reported today that the County received ratings from Standard & Poor’s Rating Services (S&P) and Moody’s Investors Services (MIS).
S&P maintained its short-term rating of SP1+ for the upcoming issuance of Genesee County 2013 General Obligation (GO) Limited Tax Notes which state that the outlook is stable. MIS also maintained its short-term rating of MIG 1. The proceeds from notes will finance advances to underlying municipalities for their respective share of outstanding property tax delinquencies as of March 1, 2013.
S&P raised its long-term rating on GO debt from A to A+, citing the view of the County’s:
- Increasingly diversified economy, serving as a bedroom county to Oakland County
- Adequate income indicators
- Maintenance of very strong general fund reserves, augmented by additional reserves held outside the general fund, and
- Moderate overall debt burden
MIS lowered its long-term rating, A1 to A2, but removed its negative outlook. MIS cited managements’s demonstrated willingness to reduce expenditures in line with declining revenues to support favorable operating results. They also cited its modest debt burden with further borrowing expected to be limited and supported by enterprise operations. However, they stated that the County’s credit profile matched that of other comparable municipalities with ratings of A2.