According to Jean Buckley, the City's financial advisor, S&P upgraded the City’s Issuer Credit Rating by one notch from A+ to AA- , classified as “high grade,”  and further defined as “An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree.” on Friday March 7. The City’s lease ratings were also upgraded one notch from A to A+. The upgrade is the result of S&P’s recent surveillance of the City using S&P’s new rating methodology for local, non-school district issuers. We expect to get the rating on the 2014 Refunding Bonds next Friday, March 14.

Typically, higher bond ratings mean that the City’s cost of borrowing goes down.