Coveted AAA bond rating awarded to Elgin for fifth year in a row
The City of Elgin recently received its fifth consecutive AAA bond rating from the nationally recognized statistical rating organization, Fitch Ratings.
The top bond rating reflects the city's strong financial management, diversified revenue streams and low debt ratio.
“Credit ratings are the only objective, fact-based criteria in local government that provide feedback -- not only in how the city manages its finances -- but on the quality of the underlying policy decisions made by the city council,” Elgin City Manager Sean Stegall said. “We are especially pleased that we received this ranking from Fitch as it is the gold standard for municipal credit ratings.”
The high bond rating is an asset to the city as it seeks to attract new businesses and investments in the business community. With the recent approval of a $25 million general bond issuance for street and utility improvements, the AAA rating assures investors that the bonds are a low-risk investment. The AAA rating also applies to the city's current general obligation bonds of $74.85 million and $5 million in revenue bonds.
Fitch Ratings' credit ratings range from AAA to D. Municipalities with a bond rating of AAA to BBB are considered to have a low to moderate credit risk, while bond ratings of BB to D indicate a higher credit risk and greater risk of default by the municipality.