Standard and Poor’s — the New York-based bond rating agency that rates more than 80 percent of the country’s municipal and corporate bonds — raised the Town of Braselton’s water and sewer system revenue bonds’ rating to an A.
The town received official notification of the rating increase based on the timing and quality of the 2003 bonds being refinanced, projected to save $1.1 million over the life of the bonds. S&P’s credit ratings express the opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.
“The higher rating also reflects our understanding that management will continue to manage its future purchased water costs effectively,” said credit analysis Paula Costa of Standard & Poor, enumerating six key economic assessment categories.
Major rating agencies assess economy, debt structure, financial condition, demographic factors and best management practices of the governing body and administration. Moreover, a financial analysis is performed with respect to water and sewer system users and rates. “A” bonds are described as having “strong capacity to meet financial commitments,” according to the rating agency.
“The rating increase is welcome news and serves as a confirmation of our fiscal management as public stewards, as well as our economic projections for future growth,” said town manager Jennifer Dees in a statement.