The City of McPherson was notified on August 12, 2014 that Standard and Poor’s Credit Rating Service was beginning the process of reviewing the City of McPherson’s credit rating for current outstanding general obligation bonds in accordance with new local government rating criteria established by Standard and Poor’s. After providing various information and updates to the rating agency, the City recently received the results of the review.
On September 9, 2014, the City of McPherson received notice from Standard and Poor’s that the city’s previous credit rating of A+ was being upgraded to AA- . The rating system looks at seven key weighted factors in determining a final rating. These factors include: institutional framework; economy; management; budgetary flexibility; budgetary performance; liquidity; and debt and contingent liabilities. According to Standard and Poor’s the City of McPherson was either strong or very strong in the areas of financial management practices, budgetary flexibility, liquidity, budgetary performance, and institutional framework.
The news is positive for the City of McPherson as borrowing capabilities and favorability of future bond interest rates are directly tied to the city’s credit rating. In light of recent rating downgrades received by both the US Government and the State of Kansas, the rating indicates that the economy, finances, and financial management practices of the City of McPherson has been looked at as favorable and improving as it takes into account all weighted rating factors.