Valparaiso, IN GO Rating Raised To #AA# On Very Strong Available Cash Reserves

Stocks and Financial Services Press Releases Tuesday July 3, 2018 17:47
CHICAGO--3 Jul--S&P Global Ratings

CHICAGO (S&P Global Ratings) July 2, 2018--S&P Global Ratings raised its rating to 'AA' from 'AA-' on Valparaiso, Ind.'s unlimited-tax general obligation (GO) debt outstanding. At the same time, we assigned our 'AA' rating to the city's series 2018 GO bonds. The outlook is stable.

The series 2018 bond proceed will be used to finance renovation projects at the city hall.

"The raised rating reflects our view of the city management team's ability to maintain a very strong level of available cash reserves, which provides them with financial flexibility to finance certain capital needs with funds on hand, enabling a very strong overall debt and contingent liability profile," said S&P Global Ratings credit analyst Kathryn Clayton.

The 'AA' rating reflects our assessment of the following factors for the city:
  • Strong economy, with access to a broad and diverse metropolitan statistical area (MSA);
  • Adequate management, with standard financial policies and practices under our Financial Management Assessment methodology;
  • Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2017;
  • Very strong budgetary flexibility, based on the available cash reserve as a percentage of operating expenditures in fiscal 2017;
  • Very strong liquidity, and access to external liquidity we consider strong; Very strong debt and contingent liability profile, as well as rapid amortization; and
  • Strong institutional framework score.

The stable outlook reflects our expectation that the city's management will continue to make budgetary adjustments as necessary to produce balanced operations that support the city's very strong budgetary flexibility and liquidity profiles. Additionally, we expect the city's proximity to the Chicago-Naperville-Elgin MSA will provide stability in the local economy in the near term. As a result, we do not expect to change the rating within the two-year outlook period.

If the city's budget begins to show signs of stress, and the budgetary performance deteriorates or budgetary flexibility or liquidity weaken, we could consider a lower rating.
If economic indicators improve to levels we view as commensurate with those of higher-rated peers while all other factors remain equal, we could raise the rating.
Valparaiso, with an estimated population of 33,274, is located in Porter County, about 55 miles southeast of downtown Chicago.

Latest Press Release

NEXT BLOCK ASIA Beyond Crypto

NEXT BLOCK ASIA + Fabulous Bangkok After-Party Bangkok, Thailand will host the 2-day NEXT BLOCK ASIA "Beyond Crypto" by Krypton Events and CoinAdvice on 25-26 June 2019 at the W Hotel. The conference will bring together experts from CRYPTO and BEYOND,...

Photo Release: EXIM Thailand Visits Deputy Governor of State Bank of Vietnam To Discuss Thai Investment Prospects in Vietnam

Mrs. Warangkana Wongkhaluang (second left), Senior Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently paid a visit to Mr. Doan Thai Son (center), Deputy Governor of State Bank of Vietnam in Hanoi to discuss monetary...

Photo Release: EXIM Thailand Visits Thai Ambassador to Hanoi Discussing Ways to Promote Thai-Vietnamese Trade and Investment

Mrs. Warangkana Wongkhaluang (second left), Senior Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently paid a courtesy visit to His Excellency Mr. Tanee Sangrat (center), Ambassador of Thailand to Vietnam and Miss...

TMB re-affirms its leadership position in the Thai banking industry by launching the first ever Multi Currency Account in Thailand allowing exporters to manage six major currencies in one account

TMB continues to develop digital solutions that truly meet customer's need, creating positive changes to customer's life, along with its Make THE Difference philosophy, to re-affirm its market leadership position. TMB today becomes the first bank in...

Fitch Rates EXIM#s USD300 Million Senior Notes Final #BBB+#

Fitch Ratings has assigned Export-Import Bank of Thailand's (EXIM, BBB+/Stable) USD300 million five-year senior unsecured notes a final rating of 'BBB+'. The notes were issued under the bank's USD1.5 billion medium-term note (MTN) programme. The...

Related Topics