City of Rochester, NH Bond Rating Advances to AA, Recognized for Good Financial Practices and Positive Economic Progress

ROCHESTER, N.H., Sept. 22, 2014 /PRNewswire/ -- The City of Rochester, New Hampshire's bond rating has been raised from "AA-" to "AA" by Standard & Poor's (S&P) Rating Services and the outlook, the rating service notes, is "stable" and "strong."

The stable outlook reflects S&P' opinion of Rochester's strong budgetary flexibility and liquidity profile, coupled with strong management conditions and "good" financial practices and policies. In its report, the rating service also noted that the city's debt and contingent liability profile is very strong.

"Our bond rating increase is a testament to the economic progress Rochester has realized in recent years," said Rochester Mayor T. J. Jean. "The city council continues to work collaboratively with city administration to ensure our financial management policies are sound. This, coupled with healthy financial reserves, continues to afford the city the budgetary flexibility it needs to secure capital improvement financing at competitive rates. Rochester residents and businesses should be very proud of this achievement."

S&P found the city has an adequate economy with projected per capita effective buying income at 95 percent of that of the U.S. and a per capita market value of $67,569. For fiscal 2013, the city ended with a surplus in both its general fund and total governmental funds of 0.2 percent and 1.7. Tax revenue, considered a stable source, generates about two-thirds of the general fund revenues. For fiscal 2015, the city adopted a $91.6 million balanced budget.

"The change in our bond rating by S&P has resulted from a deliberate strategy to employ a combination of conservative revenue estimates, thoughtful and prudent budgeting practices and ongoing close monitoring," said Rochester Deputy City Manager/Director of Finance & Administration Blaine Cox. "The city recognizes that maintaining a strong financial position is crucial to our long-term success."

Supporting Rochester's finances is liquidity Standard & Poor characterized as very strong, with total governmental cash at 30.3 percent of governmental funds expenditures and 453 percent of total governmental funds debt service. The rating agency grades entities on a scale of "D" to "AAA."

For more information, visit www.rochesternh.net

City of Rochester, New Hampshire
31 Wakefield Street, Rochester NH 03867 | 603-335-7505   www.rochesternh.net

FOR INFORMATION CONTACT
Blaine Cox, Deputy City Manager/Director of Finance & Administration, 603-335-7505

SOURCE City of Rochester