[Durham INC] Durham's AAA Bond Rating Re-Affirmed

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

For Details, Contact:

Amy Blalock

Sr. Public Affairs Specialist

(919) 560-4123 x 11253

(919) 475-7735 (cell)

Amy.Blalock at durhamnc.gov <mailto:Amy.Blalock at durhamnc.gov> 

 

For Immediate Release:  September 29, 2009

 

Durham's 'AAA' Bond Rating Re-Affirmed By All Three Major Rating
Agencies

'AAA' Designation is Highest Rating Illustrating City's Credit
Worthiness and Financial Stability

 

Durham, N.C. - Despite the national recession and its revenue impact on
the local economy, the City of Durham's sound financial management has
been rewarded by receiving an 'AAA' bond rating from Standard & Poor's,
Fitch Ratings, and Moody's Investors Service.  Durham is one of less
than 25 cities nationwide that have 'AAA' ratings from all three major
bond rating agencies.

 

The 'AAA' debt rating, the highest rating a municipality can receive,
allows Durham to borrow money at the lowest interest rates available,
thus saving taxpayer dollars when issuing general obligation (GO) bonds
to finance municipal capital projects.  GO bonds are the pledge of an
issuer's full faith and credit to repay the financial obligation.  The
'AAA' rating applies to $22.9 million in series 2009 GO refunding bonds,
and $228 million outstanding GO bonds.

 

According to City Manager Thomas Bonfield, the City's strong financial
position and management practices re-affirmed for the three major rating
agencies that the City of Durham was stable and worthy of the highest
credit rating possible.  "Despite the current economic conditions,
Durham has weathered the recession well using conservative budgeting,
multi-year financial planning, and by maintaining a moderate debt
burden," said Bonfield.  "For our citizens, the 'AAA' rating is a very
strong indicator that, under the wise guidance of the mayor and City
Council members, we diligently and efficiently manage their tax
dollars."  

 

Standard & Poor's re-affirmed its 'AAA' rating citing the substantial,
diverse local economic base, continued steady property tax base growth,
conservative management practices, and favorable overall debt position.
Fitch Ratings re-affirmed its 'AAA' rating citing the City's strong
economic fundamentals and excellent growth prospects, as well as its
historically sound financial performance and planning.  Finally, Moody's
Investors Service re-affirmed its 'AAA' rating citing the City's
proactive approach to managing budgetary pressures related to the
recession as one reason for granting the highest credit rating.

 

Additional information about the City's 'AAA' ratings is available on
Standard & Poor's Web site at www.standardandpoors.com, Fitch Rating's
Web site at www.fitchratings.com, or Moody's Investors Service Web site
at www.moodys.com. 

 

About the City of Durham's Department of Finance

The mission of the City's Department of Finance is to professionally and
prudentially enhance the City's financial position. The department is
comprised of the following divisions:  the Director's Office, Accounting
Services, Treasury, Billing and Collections, Risk Management, and
Purchasing.  For more information, visit 
www.durhamnc.gov/departments/finance.  

 

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