S&P Ratings Affirm City's Creditworthiness
General Obligation Bond and Cleveland-Cuyahoga County Port Authority Bond Highly Rated
Dateline: June 12, 2017 - S&P Global Ratings, a credit rating and research agency, affirmed the City’s financial strength and stability with its recent rating of two bond issues.
S&P affirmed the City’s AA+ long-term rating on its existing general obligation debt. The proceeds from this bond will support a portion of the City’s financial commitment to the redevelopment of the Van Aken District and will fund sewer improvement projects in the City.
A second bond issued by the Cleveland-Cuyahoga County Port Authority for $5.095 million received a rating of AA. The debt will be used to fund a portion of the City’s financial obligation to the redevelopment of the Van Aken District that the City cannot fund with its own bonds. The City will pay these bonds from non-tax revenues. The lowered rating reflects that these bonds will not be general obligations of the City.
The S&P report noted, “The stable outlook reflects our anticipation that the city will maintain its very strong budget flexibility and liquidity profile, which are supported by its strong management profile.”
Mayor Earl Leiken says, “The S&P report and bond rating take into account the strong financial position of Shaker Heights and the City’s stringent management and financial practices and policies. We continue to achieve top-notch bond ratings that enable us to support important projects in the City, like the Van Aken District.”