Bangkok--29 Sep--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AAA' rating to Phoenix, Ariz.'s series 2009A, 2009B, and 2009C general obligation (GO) bonds. Standard & Poor's also affirmed its AAA' rating and underlying rating (SPUR) on the city's outstanding GO bonds.
"The rating reflects the city's very broad and diverse economy at the center of the larger metropolitan region; maintenance of strong fund balances over many years and continued good operating performance, even in light of recent revenue stress; continued maintenance strong financial policies and procedures; and moderate debt levels and projected debt needs," said Standard & Poor's credit analyst Matthew Reining.
The stable outlook reflects our expectation of continued good financial performance for a city that has managed to maintain strong reserves during a period of revenue stress. If revenues decline further such that city management could not bring the operating budget into structural balance, the rating would be pressured. The broad and diverse metro economy, while experiencing a housing-centered correction and a national recession, remains a regional center and has continued to attract new businesses, albeit during a period of higher employment. We base our outlook on the long-term stability in the city's economic underpinnings.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Cotnact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Matthew Reining, San Francisco (1) 415-371-5044
David G Hitchcock, New York (1) 212-438-2022
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]