S&P gives Pinal County end of year cheer

Standard & Poor’s rewarded Pinal County’s Board of Supervisors and management with some much needed cheer by upgrading the County’s debt rating from A- to A.

Standard & Poor’s states the upgrade was earned as a result of “continued economic growth and diversification and maintenance of a strong financial position with strong reserves.”

An upgrade in the debt ratings means that when Pinal County issues bonds or debt obligations to fund major projects, it can borrow at more favorable rates. This means the County can complete the projects taxpayers require without high interest payoffs down the road.

“Moving up to an A rating signals to investors and lenders that the County is a very good risk, meaning there is a very low probability of default,” County Manager Terry Doolittle said. “It means Pinal County is very creditworthy. This news is a bright spot for the financial world considering all the doom and gloom about the softening economy and shaky investments in the sub-prime markets.”

“Standard & Poor’s and the other ratings agencies take several factors into account when they issue ratings,” explains Manny Gonzalez, the Assistant County Manager who, among other responsibilities, oversees administration, budgeting and finance. “They look at management, finances, debt load and the economy as a whole. The County manages finances very prudently by not carrying a lot of debt and maintaining above average reserves so we can withstand swings in the economy.”

Mark Reader of Stone & Youngberg, LLC the County’s investment banking firm, pointed out several comments in the Standard & Poor’s summary that he said “expressed confidence in Pinal County’s management and fiscal responsibility.”

“Pinal County’s financial performance is consistently strong, aided by good fiscal management practices,” Standard & Poor’s Primary Credit Analyst Timothy Barrett states in his summary.

Standard & Poor’s is a leading provider of financial market intelligence. The world’s foremost source of credit ratings, indices, investment research, risk evaluation and data, Standard & Poor’s provides financial decision-makers with the intelligence they need to feel confident about their decisions.

By continuing to expand and diversify its economic base, Pinal County spreads its risk across more areas of the economy. Not long ago, the County’s risk profile moved in direct relation to the mining industry. With more housing, jobs, industry and retail the County is better able to ride out the highs and lows.

“The policy direction from the Board of Supervisors and our professional management team work hand-in-hand to ensure that Pinal County has the fiscal and financial resources to provide quality services to residents and businesses,” County Manager Terry Doolittle said.