Standard & Poor’s (S&P) and Fitch Ratings, leading providers of credit ratings, completed independent reviews of the Town of Queen Creek’s credit rating, both resulting in an upgrade from AA to AA+, just one notch below the highest possible rating.
The bond rating upgrade is timely as the town considers funding for the completion of Mansel Carter Oasis Park, the east park site and the recreation and aquatic center.
“This rating upgrade acknowledges the continued, tremendous financial growth and maturation of the town, which is all encompassing but is rooted in two things,” said Queen Creek Finance Director Scott McCarty. “First, the leadership of the Town Council in building a community, and second, our population growth and economic development as a result of being a desirable place to live and run a thriving business.”
The town has received a series of credit rating increases over the past 15 years from both S&P and Fitch Ratings. Rating agencies look at four main categories: debt burden, management, financial performance and economic base.
“The rating increase is a testament to all the hard work for many years by the Town Council and staff,” Queen Creek Town Manager John Kross said. “The higher a community's rating, the better credit risk they are, and by extension, the lower interest rates received when funding roads, parks and other projects. As a young, growing community, we know there are necessary investments and will continue to make sound financial decisions.”
S&P indicated several factors contributing to the upgrade including the town's continued strong revenue growth prospects, increasing reserves and recent progress regarding pension funding. In addition to the items noted by S&P, Fitch Ratings cited strong pledged revenue growth prospects, expected solid resilience during recessionary economic periods, and development underway and the town's ongoing infrastructure plans boding well for continued economic expansion.
For more information about either report, visit StandardandPoors.com and Fitchratings.com. For more information about the town, including the its budget, visit QueenCreekAZ.gov.
