Standard & Poor’s, Moody’s Reaffirm Naperville’s AAA Bond Rating
Long-term financial plan cited in rating rationale
The City of Naperville is proud to announce that it has once again been awarded the highest bond rating available on the City’s General Obligation bonds by both Standard & Poor’s Ratings Services (S&P) and Moody’s Investors Service.
Naperville is proud to have received the ‘AAA’ rating by S&P consistently for every debt offering for more than two decades. The City has also held the ‘Aaa’ rating issued by Moody’s over the same 21-year period. Both the S&P’s and Moody’s ratings are reflective of the City’s very strong economy, budgetary flexibility and availability of funds and strong debt position, with over 80 percent of Naperville’s debt scheduled to be retired in the next 10 years.
Specifically noted in S&P’s report were the “very strong” financial management practices of the City, especially its strong financial policies and practices. Moody’s cited the City’s large and diverse tax base, affluent residential base and low unemployment levels, financial flexibility and the stabilization of sales tax revenues as justification for its rating.
“Our City Council and City staff’s work last year on developing and implementing financial principles as part of a long-term financial strategy has positioned us well for on-going success,” Mayor Steve Chirico said. “We tackled a difficult issue using an organized, proactive approach, and it has resulted in maintaining this premiere rating.”
The rating reviews were performed in conjunction with a planned $62.38 million bond issuance later this month, which will be used for $15.3 million in capital projects such as building maintenance, stormwater and traffic initiatives. The remainder will refinance previously issued bonds to generate present value savings of approximately $3.5 million. The full ratings reports can be viewed at www.naperville.il.us/government/city-finances/.
About Naperville: Located 28 miles west of Chicago, Naperville, Ill., is home to approximately 145,000 people. This vibrant, thriving city consistently ranks as a top community in the nation in which to live, raise children and retire. The city is home to acclaimed public and parochial schools, the best public library system in the country, an array of healthcare options and an exceptionally low crime rate. Naperville has ready access to a variety of public transportation, housing and employment options. The city’s diversified employer base features high technology firms, retailers and factories, as well as small and home-based businesses. Residents also enjoy world-class parks, diverse worship options, the opportunity to serve on several City boards and commissions, a thriving downtown shopping and dining area, a renowned outdoor history museum known as Naper Settlement and an active civic community. For more information, please visit our website at www.naperville.il.us.