Worthington News

Standard & Poor's

Worthington's bond rating improves to best: AAA

By ThisWeek Community News  • 

Worthington's Standard & Poor's bond rating has been upgraded from AA to AAA.

The good news was announced by City Manager Matt Greeson to Worthington City Council on Oct. 21.

Only 11 cities in Ohio and 213 nationwide have AAA ratings, he said.

A city's rating is based on its financial situation. Generally, higher ratings result in lower borrowing costs.

"This can result in real long-term savings for Worthington taxpayers," Greeson wrote in a memo to council.

The upgrade is based on a review done by Standard & Poor's analysts earlier this year. Reviews are done every couple of years, Greeson said.

The evaluation involved asking city finance director Molly Roberts a series of questions.

The improved rating reflects the city's concerted effort to build a healthy fund balance into the city's budget, Greeson said.

A summary released by Standard & Poor's stated Worthington's economy is very strong, with projected per-capita effective buying at 141 percent of the U.S. level.

"In our opinion, the city's budgetary flexibility remains very strong, with available general-fund reserves above 15 percent of expenditures for the past two years and no plans to significantly spend them down," the summary stated.

Worthington's consistent financial performance and economy are supported by strong management, according to the statement.

"We do not expect to revise the rating in the next two years because we believe the city will maintain very strong budget flexibility and continue to benefit from the broad and diverse Columbus metropolitan area," the review stated.

The Standard & Poor's bond rating ranges from AAA to D.The highest rating of AAA means Worthington has an "extremely strong capacity to meet financial commitments."

Worthington's previous AA rating mean the city had a "very strong capacity to meet financial commitments."

Comments