Westerville Retains AAA Bond Ratings

City Achieves Highest Rank in Long-Term Credit Rating Scale

Earlier this year, the City of Westerville again earned the AAA bond rating from Fitch Ratings and Moody’s Investor Services. This is the second consecutive year the City has earned the Fitch ranking, representing “investment grade” organizations that are considered financially reliable and stable with low to moderate credit risk. The rating from Moody’s Investor Services joins a AAA rating from Standard & Poor’s, all of which represent the highest achievable bond ratings for municipalities, reserved for the highest quality public entities with the lowest credit risk.

In the most recent re-evaluation in June, Fitch Ratings said the current ranking (upgraded from AA+ in 2010) centers on:

• Sound financial management practices and positive operating results, contributing to larger than average reserve levels and significant financial flexibility;

• The City’s commitment to business development initiatives, creating a diverse, growing economic base;

• Rapid amortization of principal and manageable future capital plans balancing moderate debt levels.

Westerville Finance Director Lee Ann Shortland says the rankings provided by these independent agencies continue to recognize the City’s outstanding fiscal management and conservative approach to debt.

“Our strategic financial planning has emphasis on flexibility reserve levels aligned with conservative policies and management practices that produce positive operating results,” she said. “These are affirmations that communicate to potential investors and financial markets that Westerville is meeting the expectations of our industry and most importantly, our residents.”

The ratings also evaluate the City’s performance as it relates to the national economic climate. In comparison, Westerville receives consideration for lower unemployment rates. Additionally, the 2008 voter-approved income tax restructuring continues to be noted as a positive contributor to the local economic viability.

“Being a ‘AAA-community’ assures that Westerville will have access to lower interest rates on debt. For example, interest costsavings from a 2010 bond issue will realize more than $231,000 in interest savings over the 20 year life of the bond,” said David A. Collinsworth, Westerville’s City Manager. “Our objective is to meet and maintain Westerville’s expectation that the City is a good, responsible steward of public funds, and these repeat designations recognize those efforts.”