HERMISTON The city of Hermistons credit rating has been upgraded, making any bonds it issues more attractive to investors.
Credit rating agency Standard & Poor increased the citys rating from an A+ to an AA- on Thursday after revising its evaluation of Hermistons financial management from good to strong. The agencys highest rating is AAA.
According to the assessment by Standard & Poor, factors that led to the upgrade in the financial management category included strong financial reserves, long-term financial planning policies, formal debt management plans and monthly budget reporting to the city council.
The report states the agency does not expect to have to lower the rating in the next two years because the citys reserves should cushion any financial blows. However, Standard & Poor also stated that despite the citys strong financial management it does not expect to increase the rating again during the next assessment period because of Hermistons limited economy.
A citys credit rating signals to investors how likely it is that the city will pay investors back for general obligation bonds it issues to pay for projects like the new wastewater treatment plant. The report by Standard & Poor marks bonds issued by Hermiston as a good investment.