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Standard & Poor's is the third ratings service to assign a 'AA' rating to the city of Las Vegas general obligation (GO) (limited-tax) medium-term bonds (Main Street Parking Garage), series 2009. Standard & Poor's also affirmed its 'AA' rating and underlying rating (SPUR) on the city's outstanding GO debt.
The Standard & Poor’s report states, “The stable outlook reflects our expectation that the city will continue to prudently manage its finances and make additional appropriate budgetary adjustments, if or as needed, to maintain its strong reserve position. The local Las Vegas economy's recent significant downturn is a credit concern, but we believe the city's strong long-term economic fundamentals still hold true, including the city's (and county's) reputation as one of the leading national and international tourism and entertainment destinations.”
The report cites “strong financial practices and policies and an experienced, stable, and proactive management team whose efforts are expected to continue to provide stability to city reserve levels;” and “continued low debt, with most city GO debt in the form of self-supporting bonds from dedicated revenues including utility revenues,” to support the strong rating.
“This is big news, especially in this tough economy,” said the city’s chief financial officer, Mark Vincent. “All the hard work, planning and sacrifices made across the city have really paid off. We will continue to practice prudent management of city finances with an eye toward the future, to promote a strong, long-term economy for Las Vegas.”
Maintaining strong bond ratings means the city can borrow money at a lower interest rate.
The city of Las Vegas is working to manage costs and revenue resources to achieve efficient operations. Visit the city’s Web site at www.lasvegasnevada.gov to learn more about what is being accomplished.
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