Fitch Upgrades Riverton City Bonds to 'AAA'
An ‘AAA’ rating is the highest possible rating assigned to an issuer’s bonds by credit rating agencies. It identifies bonds with the highest credit quality, demonstrating an exceptional degree of creditworthiness, because the issue can easily meet its financial commitments.
Currently there are only four municipalities in the state of Utah that have ‘AAA’-rated bonds: Salt Lake, South Jordan, St. George, and Riverton.
The upgrade of the city's Long-Term IDR and franchise and sales tax revenue bond rating to 'AAA' from 'AA' results from application of Fitch's revised criteria for U.S. state and local governments, released on April 18, 2016, particularly with respect to the city's ability to withstand cyclical revenue declines and the resiliency of pledged revenues historically. The rating on the franchise and sales tax revenue bonds reflects strong debt service coverage and revenue growth prospects; the rating is capped by the IDR as surplus pledged revenues may be used for general governmental operations and do not constitute special revenues under Chapter 9 of the U.S. Bankruptcy Code.
“This is an important accomplishment for our City,” stated Mayor Bill Applegarth. “Lisa Dudley and her team continually contribute their professional expertise and demonstrate their dedication to the highest standards of fiscal responsibility. Our entire community benefits from their work by enjoying an improved quality of life in Riverton City.”
Read compete FitchRatings press release and learn more about Riverton City’s new AAA rating here: