The rating agency Standard and Poors has upgraded the city's credit (bond) rating from from A+ to Aa- (from strong to "very strong capacity to meet financial commitments"). Municipal Bond ratings reflect the rating agency's opinon of the likelihood a city will default on its loans--and are based largely upon population demographics (the relative wealth of the community at large), municipal debt, and current/future economic conditions/projections.
The improved credit rating could lessen interest rate payments for the city as well.
When asked to comment, Coucilmember Quinn pointed to the adoption of the city's first ever sales tax (Jun 2009) for the rating improvement-- as did Council President Mixon, who added that "not going deeper into debt and establishing a rainy day fund/savings account" were factors as well.
Another official thought that better city management (hiring of a City Administrator, changes to budgeting processes, etc.) contributed to the improvement as well.
The other major credit rating agency, Moody's, did not change its rating for the city (A2).
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