St. Louis County’s bond rating improvesStandard and Poors Ratings Services has raised the county’s bond rating to AA+, the third such increase in the past decade.
By: News Tribune staff, Duluth News Tribune
St. Louis County continues to get good grades for having its fiscal house in order and has boosted its GPA.
Standard and Poors Ratings Services has raised the county’s bond rating to AA+, the third such increase in the past decade.
It’s the second-highest possible rating for a municipal government and means that the county — and its taxpayers — will have to pay less interest every time they borrow money to build and buy things.
The higher rating will help as early as Tuesday, when the county sells nearly $5.5 million in bonds to help pay for major refurbishing at the Northeast Regional Corrections Center outside Duluth, which the county operates with other counties in the region.
The county borrows money by selling bonds paid back over 15 years or so. Bond buyers look for safer bets and are willing charge less interest to governments that have a good fiscal track record. Standard and Poors praised the county’s “budget flexibility, liquidity, and debt and contingent liability profile thanks to good reserves, available cash on hand and low debt service. Analysts also listed as strong the County’s management with good financial policies, and the broad and diverse local economy,” county officials said today.