Service upgrades PV’s bond rating
Wednesday, December 02, 2009
PRESCOTT VALLEY - “Sizable” General Fund reserves and “manageable debt profile” helped to upgrade the town’s bond rating from “negative” to “stable,” a national rating service reported Monday.
The A+ rating also reflects “financial pressures generated by declining sales tax and other economically sensitive revenues,” Fitch Ratings stated in a press release. Institutional investors read Fitch reports, spokeswoman Cindy Stoller in New York City said.
“Any bondholder can read these and get our take on what the town’s financial profile currently is,” said Steve Murray, an analyst with Fitch Ratings in Austin, Texas. “A lower rating does reflect additional risk to bondholders. If the risk is perceived to be higher, bondholders usually demand a higher return for that.”
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