Azavar Government Solutions Blog

Strengthening Municipal Bonds and Credit Ratings

Posted by Azavar Government Solutions on Mar 17, 2015 4:27:00 PM

A city that previously operated as a sales tax haven may struggle in the short term to operate with reduced income as businesses choose to terminate rebate agreements, but it ultimately has the opportunity to re-establish fiscal security based on sound financial management and re-optimized revenues, leading in turn to stronger bond ratings. Until then, these communities will struggle to maintain quality bond ratings.

Credit agencies such as Standard and Poor’s allocate a significant number of points to evidence of this kind of stability: the Village of Harwood Heights is just one, positive example of a community that has managed to regain its A+ rating after weathering the Great Recession, thanks to an improvement in liquidity without the use of sales tax rebate sharing agreements that are being challenged in court. Download the case study.

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Topics: Sales Tax Reviews, Credit Ratings