Portland gets highest credit rating from Standard & Poor’s

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The City of Portland has received the highest possible credit rating from one of the largest and best-known credit rating agencies in the United States.

Standard & Poor’s Global Ratings raised its credit rating on all of Portland’s general obligation debt to AAA over the weekend, the city announced Thursday. The town’s credit rating had been AA+. The S&P rating is a credit rating that describes the general creditworthiness of a company or government entity that issues debt.

A credit rating helps a municipal loan fund issue bonds because investors can be assured the interest will be paid and the risk of default is low. The AAA rating is expected to reduce debt on Portland’s bond servicing borrowing costs, create additional demand for Portland city municipal bonds, and could save the city millions of dollars in years to come, the city in a communicated.

S&P attributed the credit rating upgrade to the continued growth of the local economy, strong financial management and financial policies, and well-managed debt metrics. AAA is the highest measure of solvency that a town or city can receive from S & P.

“It will save the city millions of dollars in debt service charges down the road and Portland joins a small handful of communities in New England that hold AAA ratings,” Portland Finance Director Brendan T. O’Connell said. stated in an email. O’Connell said the credit rating boost is the second update in City history, with the last update occurring in 2017.

“We could not be more delighted to announce this incredible milestone,” he said. “Upgrading to AAA will save local property taxpayers millions of dollars on future debt issuance and demonstrates how well we are taking our fiscal management responsibilities.”

Municipal officials said the reduction in debt servicing costs should have a significant impact on the municipal budget. The city estimates the new rating will save Portland between $520,000 and $780,000 on the sale of municipal bonds of $51.9 million this week.

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“It is wonderful to receive this prestigious AAA rating from S&P, Portland Mayor Kate Snyder said in a statement. “This reinforces the excellent work done by our finance staff to raise the profile of the town and highlights the growth we have had in the local economy over the past few years.


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