S&P Global Ratings has assigned a AA- long-term rating to the upcoming sale of $10.9 million series 2021 certificates of participation (COPs) by the City for the Lincoln Park Stadium. S&P also affirmed the AA long-term rating on the City's outstanding general obligation debt, which was recently issued for road expansion projects, and its AA- long-term rating on the city's Public Safety COPs. These ratings indicate the outlook for the city is stable and its debt obligations are considered high investment grade
In establishing this credit rating, S&P recognized that Grand Junction serves the region as a retail and healthcare hub. It was also noted that strong redevelopment in recent years has contributed to an overall positive revenue trend for the City.
S&P also stated the following in the report regarding the AA- rating:
• Strong management, with good financial policies and practices under S&P’s Financial Management Assessment methodology
• Adequate budgetary performance, with operating surpluses in the general fund and at the total governmental fund level
• Very strong budgetary flexibility, with an available fund balance in fiscal 2019 of 32% of operating expenditures
• Very strong liquidity, with total government available cash at 56.8% of total governmental fund expenditures and 8.7x governmental debt service
• Strong access to external liquidity
• Strong debt and contingent liability profile
• Strong institutional framework
Although a primary source of revenue for the City is sales and use taxes, which S&P considers volatile revenue streams, S&P noted that Grand Junction has only been modestly affected by the recent economic crisis caused by the COVID-19 pandemic relative to its municipal peers. While other municipalities have experienced ratings downgrades due to the negative impact of the COVID-19 pandemic, the City’s strong financial policies and practices, management and standing has contributed to the maintenance of these ratings.
Contact: Greg LeBlanc, Sr. Assistant to the City Manager | 970-244-1557 or email@example.com