The Town of Mount Pleasant’s already stellar credit rating has gotten even better. Standard & Poor’s (S&P) recently raised its rating from AA to AA+ on the Town’s $15.7 million General Obligation Bond of 2007. The AA+ score is a clear indication that Mount Pleasant holds an exceptional credit rating. The 2007 bonds are general obligations, secured by the full faith and credit of the Town, used to acquire, design, construct, improve, expand, and equip various municipal improvements – including transportation projects, a new senior center, and other various capital projects.
“Mount Pleasant has kept its creditworthiness in great part due to its strong financial performance and low debt levels,” said Mount Pleasant Mayor Harry M. Hallman Jr. “Our financial position has remained strong and our overall debt burden has remained low. This stable outlook is allowing us to carry this additional transportation bond obligation without jeopardizing our credit rating. We purposely elect short maturity schedules for our loans. Other municipalities borrow over a 20, 25 and sometime 30-year repayment time frame – we generally retire our loans in 10 years.”
“S&P’s municipal debt ratings range from AAA rating (highest rating) to D with 11 grading steps between the two,” said Administrative Services Director Charlie Potts. “A debt rated AA+ is but one step away from the highest rating and indicates a very strong capacity to pay interest and repay principal. It differs from the highest rating only in small degree. S&P’s rating is not a recommendation to purchase, sell or hold a security. It helps the investor evaluate credit risk and represents one element of the entire investment decision-making process.”
“I would like to congratulate the Town for its increased credit rating. It reflects market recognition of the Town’s strong financial management and prudent fiscal policies. The practice of amortizing debt rapidly is another factor in the attractive rating the Town received – which results in savings to the taxpayers of Mount Pleasant,” said John Paul Trouche, Haynsworth Sinkler and Boyd, PA, Charleston.
“We expect that the Town will continue to experience economic growth and development that will provide steady property tax levy and sales tax revenue growth,” said S&P’s credit analyst Jesse Brady. “The Town manages its growth while maintaining balanced financial operations and strong reserve levels.”
On February 28, The Town of Mount Pleasant sold $15,695,000 in General Obligation Bonds. The Town accepted the bid submitted by Robert W. Baird & Co., Inc. at an interest rate of 3.740855 per cent over a 10-year period. Nine other bidders competed for the purchase of the Town’s latest bond issue. The outstanding interest rate offered by the winning bidder is compelling evidence of the Town’s high credit rating,” added Potts.
S&P’s is one of three major international rating services, including Moody’s Investors Service and Fitch Ratings. For additional information on the Town of Mount Pleasant, visit them online at www.townofmountpleasant.com.
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