Standard & Poor’s on Tuesday raised its rating on the town of Apex’s outstanding general obligation bonds to AA-plus from AA. The upgrade affects $10.8 million of outstanding GOs. The outlook is stable.
The town is planning to issue $12.5 million of additional debt over the next two years to fund capital projects. Standard & Poor’s assigned the AA-plus rating to the upcoming sale of $2.5 million of GOs for parks and recreational facilities. Details about the sale were not immediately available.
The higher rating reflects the town’s economic development as well as its ability to maintain strong financial operations and an expanding employment base, high wealth and income levels, and a low debt burden with above-average amortization, according to a report by Standard & Poor’s analyst Linda Yip.
Apex’s proximity to the Research Triangle Park remains a factor aiding the local economy’s expansion. While Apex is largely residential, Yip said development over the past few years has focused more on improving the commercial sector.
Growth in retail sales has been strong, averaging about 14.3% annually, while permit issuances averaged a strong 19.1% increase per year, Yip said, adding, assessed values in 2008 totaled $2.9 billion and represented a very strong per capita value of $86,048.