S&P Global Ratings has announced an upgrade of the City of Lebanon's credit rating from "A" to "A+". This rating increase reflects the city's adoption of stronger financial policies and practices, conservative budgeting, controlled spending, and robust sales revenue performance.
According to S&P, this upgrade in credit rating is the result of the city's consistent financial stability and robust reserves, with cash reserves exceeding 40% of expenditures since fiscal year 2016. Lebanon has consistently outperformed its budget and demonstrated significant improvement in its cash reserves. Notably, sales tax revenue, which constitutes approximately 60% of the city's operating revenue, has experienced a substantial growth of 20% over the past three years, further enhancing its credit profile.
"Lebanon's improved credit rating is a testament to the hard work and dedication of our team," said City Administrator Michael Schumacher.
"This project to improve our rating was not an easy undertaking, but Finance Director Kat Gill and her team made it happen. They work tirelessly to ensure Lebanon's finances are in the best shape possible, and this upgraded rating is proof of their exceptional efforts," Schumacher said.
Mayor Jared Carr expressed his pride in the city staff.
"Our team works diligently to make sure Lebanon's finances are professionally maintained and transparent for our citizens. This credit rating upgrade is a testament to their commitment and the effective financial policies we have implemented together," he said.
The upgraded rating also takes into account Lebanon's steady economy, and recent assessed valuation growth driven by local businesses, residential development, and reassessments. The city's low debt burden and carrying charges, along with its fully funded pension liability, have contributed to its positive credit outlook.
The stable outlook reflects S&P Global Ratings' expectation that Lebanon's good management practices, manageable debt burden, and very strong cash reserves will support rating stability for at least the next two years.
For more information about the rating and outlook, please refer to the full analysis available on the S&P Global Ratings website.