The bond rating agency S&P Global has assigned Edgerton, Kansas a AA credit rating with a stable outlook, its third-highest rating available. This rating means the City of Edgerton is likely to receive lower interest rates when it issues bonds to finance capital projects, saving taxpayers money.
In its report, S&P Global specifically highlighted the City’s very strong financial reserves, consistent general fund performance, strong management and good financial policies and practices. Edgerton’s rating was further bolstered by our strong economy and participation in the diverse metropolitan area.
“I am proud to report this high rating to our City Council and residents. It demonstrates our strong financial practices during the significant challenges of the past several years, specifically the COVID-19 pandemic, subsequent supply chain disruptions, and skyrocketing inflation. This AA rating is a testament to our Finance Department’s hard work and dedication,” said City Administrator Beth Linn. “Our strong bond rating allows us to invest and improve our infrastructure at the lowest possible costs.”
The rating report presents a thorough, objective, and independent analysis of the City’s financial operations and credit strength. The AA rating is considered very high and demonstrates very strong creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues. For instance, the City’s credit rating is one notch better than S&P’s rating for the State of Kansas, which is AA-.
As part of its outlook, S&P Global expects stability for the next two years from “continued maintenance of very strong reserves buoyed by the expectation of positive revenue trends due to new construction.”