Carmel’s financial rating remains strong

0

A recent evaluation of Carmel’s refinancing package by Standard & Poor’s (S&P) anticipates no change from Carmel’s current “AA+” rating.

“It really substantiates that the City of Carmel is not in any dire financial situation based on independent, impartial and comparative analyses by an international bond rating agency,” said Loren Matthes, principal with H. J. Umbaugh & Associates Certified Public Accountants.

The S&P analyst indicated that there were no concerns about the debt burden. The analyst went on to say that because of the assessed value increases that the debt ratios had not changed significantly despite the additional debt. Carmel’s maintains a detailed multi-year fiscal plan, which was reviewed   by S&P and discussed by Mayor Jim Brainard.

“I am very pleased that S&P has reaffirmed Carmel’s fiscal strength. S&P is a well respected financial rating firm that is objective in its analysis and this rating speaks volumes about Carmel’s true fiscal condition,” said Mayor Brainard.

The rating is preliminary until the final legal documents have been agreed upon and signed by the Carmel City Council.

The AA+ rating is S&P’s second highest rating. Ratings are meant to provide a reflection of the fiscal climate of a sovereign government and are based on the willingness of an organization or government to service financial obligations to nonofficial (commercial) creditors. It is essentially a credit-rating for an organization.

S&P is a division of the McGraw-Hill Companies. An important function of the organization is to research and publish financial information and analysis on stocks and bonds. It is one of the big three credit-rating agencies; the other two being Fitch Ratings and Moody’s Investor Service.

The five key factors that form the foundation of S&P’s sovereign credit analysis

  • Institutional effectiveness and political risks, reflected in the political score.
  • Economic structure and growth prospects, reflected in the economic score.
  • External liquidity and international investment position, reflected in the external score.
  • Fiscal performance and flexibility, as well as debt burden, reflected in the fiscal score.
  • Monetary flexibility, reflected in the monetary score.

Current Morning Briefing Logo

Stay CURRENT with our daily newsletter (M-F) and breaking news alerts delivered to your inbox for free!

Select list(s) to subscribe to



By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
Share.

Current Morning Briefing Logo

Stay CURRENT with our daily newsletter (M-F) and breaking news alerts delivered to your inbox for free!

Select list(s) to subscribe to



By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact