Standard and Poor’s (S&P) raised its long-term and underlying bond rating for the Village of North Aurora, Illinois to ‘AA+’ from ‘AA‘ with a stable outlook based on the application of its local general obligation (GO) criteria released Sept. 12, 2013.
“The rating reflects our assessment of the Village’s strong budgetary performance and very strong budgetary flexibility,” said Standard & Poor’s credit analyst Scott Nees, “along with its very strong liquidity position.”
“The stable outlook reflects our expectation that North Aurora will sustain very strong budgetary flexibility and at least adequate budgetary performance through the two-year outlook horizon,” he added. “If reserves deteriorate in a manner that we believe compromises the village’s budgetary flexibility, we could lower the rating.”
Among the many reasons cited in the report for the increase include the strong North Aurora economy, strong budgetary performance, very strong budgetary flexibility and liquidity position signified by consistent governmental fund reserve levels, strong financial management policies and practices and reasonable debt and contingent liability profile.
“While we do not anticipate any relevant credit factors improving sufficiently to warrant an upgrade in the next few years, improvement in the village’s economy, particularly in the form of higher market value per capita, and a stronger debt profile, coupled with maintenance of exceptional budgetary flexibility, could lead to an upgrade at some point” according to the press release from S&P.
North Aurora Village President Dale Berman commented on the rating increase saying, “We are very proud of the board and staff for supporting and implementing financial policies and practices that enable North Aurora to be one of the most financially strong village’s in the area, and this rating increase is a testament to that.”
An ‘AA+’ rating is one notch below the highest rating possible from S&P, or AAA.
For additional information or questions please contact Bill Hannah, Finance Director at (630) 897-8228 x225.
The full report from S&P can be located here at http://www.vil.north-aurora.il.us/departments/finance.aspx
–News Bulletin news sources