Standard & Poor’s raised Oklahoma City’s outstanding general obligation debt to AAA from AA-plus in recognition of what the agency called “the resiliency of the local economy and consistently strong financial results.”
The action comes as Oklahoma City plans to issue $47.5 million of GOs later this week in a competitive sale. The city currently has $495 million of outstanding GOs.
The city’s GOs are rated Aa1 by Moody’s Investors Service.
City manager Jim Couch said the higher rating will mean the city will pay lower interest rates on the bonds it sells to fund major capital projects, including street projects and park improvements.
“When it comes to economic news, this is as good as it gets,” Mayor Mick Cornett said at a news conference last week.
James Breeding, an analyst with Standard & Poor’s office in Dallas, said the higher rating reflects the strength and stability of Oklahoma City’s diversified regional economic base.
“We expect that the city will continue its strong financial management practices and position, and that its debt levels will remain low,” he said. “Rating stability is predicated upon management’s ability to react to a changing economic and financial environment.”
Oklahoma City, which has a population of 555,000, is the only city in the state with a triple-A rating.
