By CHRISTIN COYNE
Annetta’s general obligation bond rating has improved significantly, jumping several levels of creditworthiness from the rating the city received last year.
Annetta Mayor Bruce Pinckard said he was pleased to announce the upgraded rating at the Town of Annetta council meeting Thursday following the January submission of information for 2013.
The bond rating jumped from a BBB on CreditWatch to an A+, according to Standard & Poor’s.
“That’s pretty significant,” Pinckard said. “And when it comes time to borrow money or refinance the existing bond, it puts us in a much better position to save money on that interest, so we’re very excited about that.”
“The four-notch upgrade reflects the application of our local [general obligation bond] criteria released Sept. 12, 2013,” Standard & Poor’s credit analyst Sarah Smaardyk said in a statement. “The stable outlook reflects the receipt of updated information.”
Prior to purchasing the water system several years ago, the Town of Annetta had never borrowed money before, Pinckard said, adding that in prior years the rating has essentially been one step above a junk bond rating: BBB.
Standard & Poor’s reportedly placed the rating on CreditWatch, as well, late last year after the city failed to provide timely, quality information, according to a statement from the ratings services company. However, the provision of updated information reportedly allowed the company to upgrade the city’s bond rating.