Monday, May 5, 2014
The Town of Mount Pleasant's General Obligation bond rating was recently upgraded from AA+ to AAA by Standard and Poor's Ratings Services. Moody's Investors Service maintained its rating of Aa1, but raised its outlook on the town's General Obligation bond rating from Stable to Positive. Both Standard and Poor's and Moody's view the town as being strong in its financial position, its management and its political will to address tough problems.
“This new upgrade is great news for Mount Pleasant. It places the town in an elite class financially and underscores the quality of our management decisions,” said Mayor Linda Page. “The town has been very frugal and has had to make hard choices. To control costs, we have limited operational expenditures and implemented many innovative service improvements. Recently, we have increased revenues to address failing infrastructure, which if left unchecked will damage the quality of life and the economic viability of our town.”
“This upgrade is significant,” said Councilmember and Finance Committee Chair Chris O'Neal. “It means that the town is only the third municipality in the state of South Carolina to achieve AAA status, along with Charleston and Greenville. This rating reflects the proactive stance that the town has taken in addressing unfunded liabilities that plague many American communities. An upgrade also results in savings to the taxpayers. For example, when borrowing money for a project, the difference between an AA+ and AAA rating normally results in a reduction to the interest rate of about five basis points or .05 percent. This amounts to approximately $110,000 on a $25 million bond over 15 years.”
For more information, visit the Finance Division online at www.tompsc.com.