City of Olathe's Bond Rating Upgraded
Standard & Poor's Gives Olathe Bonds an AA+ Rating
On April 30, 2008, Standard & Poor's Rating Agency announced that the City of Olathe's General Obligation Bonds have been upgraded to an AA+ Rating. This is the second highest rating an organization can receive on their bonds from Standard & Poor's. There were four key criteria for Olathe's bonds being upgraded:
Standard & Poor's noted that "In the face of ongoing growth and revenue contractions due to economic cycles, Olathe's finances remain sound due to management's willingness to make budget adjustments to alleviate a structural budget imbalance. Policies that control debt issuance and require reserves for cash flow and contingencies suggest that the city's financial strength will continue as management addresses growing needs. Standard & Poor's deems Olathe's management practices strong under its Financial Management Assessment (FMA) methodology, indicating practices are strong, well embedded, and likely sustainable."
The rating agency also indicated that Olathe's financial outlook is "stable." "The stable outlook reflects the expectation that the city will continue to maintain its strong financial management, leading to the maintenance of high reserves despite operating and capital pressures due to growth-related pressure. The local economy's continued expansion and diversification, coupled with the maintenance of high reserves, could lead to a positive rating action."
Current Bond Rating Scale w/ Olathe's General Obligation and Water & Sewer Bond Ratings: