|
City retains credit rating
By Leigh Jones
The Daily News
Published November 3, 2009
GALVESTON — Ratings agency Moody’s Investors Service affirmed Galveston’s A2 bond rating, citing the city’s satisfactory cash position.
After Hurricane Ike, Standard and Poors downgraded Galveston’s rating from A+ to BBB, a four-level drop.
But Moody’s was not so quick to penalize the island for its storm damage, city Finance Director Jeff Miller said.
Moody’s did continue Galveston’s negative outlook but said the city’s cash reserves mitigated any near-term credit risk to investors.
Financial advisers lauded the city’s performance in excess of its modified 2009 budget and its significant ongoing reconstruction.
Lower credit ratings affect the city’s ability to issue debt.
Although officials were disappointed by the Standard and Poors rating issued last year, and confirmed this year, the city has no intention of issuing debt at this time, officials said.
If the city did decide to issue debt and needed to improve its ratings, the Moody’s report could be used as leverage to encourage Standard and Poors to consider its analysis again, Miller said.
Share |
Save |
Mail |
Print |
Letter |
1
Comments
|
|
|
