Standard & Poor’s credits the City's strong management in its decision to maintain Toledo's A- Stable rating

 

The City’s Standard & Poor’s rating continues to be A- stable.  Among summary comments S&P noted that “the city has strong management, with good financial policies and practices”.

In addition, the report recognizes that the City’s financial statements included a number of prior period adjustments of fund balances, , but this does not significantly affect how S&P views the city’s overall financial position or its general fund operations. Moreover, they also referred to the hiring of a former Ohio Supreme Court Justice and the Auditor of State to review its 2016 financial results financial reporting procedures as a positive development for the city’s financial operations.  The Auditor of State previously accepted the City’s 2016 financial results as filed in official correspondence dated August 22, 2017.

The City of Toledo has also received confirmation from Moody’s that the rating agency has reaffirmed the City’s bond rating as “A2, outlook stable” regarding its 2017 general obligation capital improvement and equipment bonds.  The positive rating ensures that the City’s borrowing costs will also remain stable.

Moody’s states “The A2 issuer rating incorporates Toledo’s role as an economic hub in northwest Ohio… Also factored into the rating are the city’s gradual improvement to financial operations and reserves, along with its moderate debt but elevated pension burdens.”

“These ratings are provided annually and show that this administration is on the right track.  The City of Toledo is continuing to improve its financial picture, and this is reflected by the positive comments of independent rating agencies,” says Mayor Hicks-Hudson.