http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_542879.html
Standard & Poor's hikes Pittsburgh's rating
By Michael Hasch
TRIBUNE-REVIEW
Saturday, December 15, 2007
Mayor Luke Ravenstahl said Friday he was pleased to learn that Pittsburgh's bond rating was raised by Standard & Poor's from the lowest investment grade because of improved finances that have led to a projected surplus for this fiscal year.
The New York-based debt rating firm raised the city's credit rating one level, to BBB from BBB-.
"The stable outlook reflects Pittsburgh's stable economy, which is experiencing limited but positive employment growth," according to a statement from Standard & Poor's.
Ravenstahl said the upgrade is based upon improved financial operations over the past two years and a projected surplus for fiscal year 2007.
"Today, the world's finest credit experts have told us, for the second consecutive year, that our responsible approach to financial management is paying dividends," he said.
Pittsburgh officials are projecting an $18.7 million surplus in the year ending Dec. 31.
"Although the city faces challenges in balancing its operations in the out-years, management is aware of the city's position and is building up reserves in advance of possible shortfalls," said John Sugden-Castillo, a credit analyst for Standard & Poor's.
Moody's Investor Service upgraded the city's credit rating 14 months ago and removed Pittsburgh from its watchlist of cities and companies whose ratings are likely to change. The removal makes Pittsburgh a more secure, attractive option for bond investors.
It was the first upgrade to the city's general-obligation debt by Moody's since March 2005, a few months after an oversight board signed off on a recovery plan to bring Pittsburgh back from the brink of bankruptcy.
"By driving down the cost of government, spending less and saving more ... we've been able to grow our savings account, proving to the world that we are an attractive city to invest in with a bright future," Ravenstahl said.
Michael Hasch can be reached at
[email protected] or 412-320-7820.
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