Bolingbrook's S&P Credit Rating jumps to all-time high
S&P Global specifically cited that village management had “realistic and well-grounded assumptions when setting the annual budget”
Last updated 12/18/2019 at 1:58pm
The Village of Bolingbrook is pleased to announce that following a ratings review, Standard & Poors Global Ratings announced on Wall Street that it has raised the village’s credit rating assigned by Moody’s in 2018 from AA (upper medium grade) to A2 (high grade), a significant upgrade of three levels.
In a congratulatory message to Bolingbrook Mayor Roger Claar, former Illinois State Senator Kirk Dillard commented, “Not an easy designation to get in a State like Illinois with its well documented fiscal woes.”
In reaching its conclusion to assign a higher credit rating to Bolingbrook, S&P Global specifically cited that village management had “realistic and well-grounded assumptions when setting the annual budget”, holds a formal investment-management policy, and adheres to an informal fund-balance target of maintaining a general fund reserve of at least three months’ operating costs, all of which are consistent with rating a AA credit score.
As a result of the increased S&P rating, the Village is refunding its 2010 General Obligation Bonds (similar to refinancing a home mortgage). The present value savings that the Village will see is $3,432,026 without extending the term of the bonds’ maturity. The closing occurred on November 21st.
Standard & Poors further reported that Bolingbrook “has a strong economy we expect will likely continue to improve through continued commercial, retail, and residential development”, citing that the commercial, industrial, and residential sectors are expanding, with multiple local housing developments underway, coupled with an expansion of major businesses such as WeatherTech.
The village also has 900 acres of annexed but undeveloped land, allowing room for more growth. S&P also concluded that Bolingbrook’s “budgetary flexibility, budgetary performance, and liquidity will likely remain strong.”
As former State Senator Dillard commented, “So don’t just take it from the Mayor, Wall Street knows Bolingbrook is run well financially and has a strong economy. S&P also applauded [Bolingbrook’s] efforts to fully fund municipal pension obligations with a goal of 90% funding….also rare in Illinois.
This was a great Wall Street “Report Card” on the Bolingbrook Village government’s financial stewardship both short and long term- examining forward and backward.”
Bolingbrook is located about 35 miles southwest of downtown Chicago, along I-55 and I-355 and just north of I-80. Moody’s and Standard & Poors are two of the nation’s top three credit rating services. For further information about Standard & Poor’s credit rating system, visit http://www.standardandpoors.com. To view the complete S&P report, visit: http://www.standardandpoors.com/ratingsdirect.