Standard and Poors Gives Ferndale A+ Rating
(Press Release, 6/24/2011)
Recent action by Standard and Poors to review the City of Ferndale’s financial position has resulted in their affirming the City’s A+ rating and provided the City with a “stable outlook.” This comes after the recent successful millage vote and at a time when the State has further cut back the statutory revenue sharing and declining property values.
According to Jaynmarie C. Hubanks, Assistant City Manager/Finance Director/Treasurer, it is a “notable achievement in an environment of declining property values, double digit housing foreclosure rates and a depressed Michigan economy. This comes at a time when many Michigan communities have had to cut back and when the ratings of others have actually declined.”
According to Ferndale Mayor David Coulter, “This is a validation of the work of the Council and Staff in trimming expenses and an indication that Ferndale continues to be headed in the right direction financially.”
This type of rating is similar to consumer credit ratings and for a local government a higher rating means that bond investors are more assured of being paid back and thus are willing to take a lower interest rate for any municipal borrowing.