City Earns A+ Long-Term Credit Rating and Stable Outlook Affirmation

ST. LOUIS, June 8, 2010—Standard & Poor’s Ratings Services, one of the nation’s leading credit rating agencies, assigned its SP-1+ rating to the city’s series 2010 $65 million tax and revenue anticipation notes (TRANs) June 4.  This annual bond issue borrows operating capital against future tax collections and is standard procedure for governments across the nation.

S&P also affirmed the A+ issuer and long-term credit rating on the city’s $49.8 million of general obligation debt and affirmed the city’s stable financial outlook.  The rating reflects S&P’s assessment of the city's position as the center of a diverse regional economy encompassing an 11-county metropolitan area in Missouri and Illinois, strong tax base growth in recent years, good financial management, and limited future debt plans.

St. Louis earned its first A+ credit rating in 35 years in May, 2008 during the height of the nation’s financial crisis when many other cities were struggling under mounting debt and revenue shortfalls.

“During these difficult economic times, the city of St. Louis is extremely pleased with S&P’s latest affirmation.  My conservative fiscal policies have proved an effective safeguard against the nation’s economic downturn, and will be the foundation on which St. Louis emerges from the great recession,” said Comptroller Darlene Green.

Standard & Poor's went on to say that the stable outlook reflects the progress St. Louis has recently made in attracting economic development, which has led to good increases in the city's tax, employment, and population bases. The outlook is also based on S&P’s expectation that the city will maintain at least balanced financial operations with good reserves as it weathers through the current economic downturn.

According to S&P, St. Louis' financial management practices are considered "good" under the agency’s Financial Management Assessment.

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