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Standard & Poor's: credit quality strong in fastest-growing cities.(News & Numbers)

Government Finance Review

| December 01, 2005 | COPYRIGHT 2005 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The 50 U.S. cities with the fastest-growing populations between 2000 and 2004 have above-average credit quality, according to a report by Standard & Poor's Ratings Services. The rating agency reports that most of these cities have managed their growth and related debt needs well.

The ratings of the 50 fastest-growing cities are more concentrated in the higher categories of "AAA" and "AA" than the municipalities rated by Standard & Poor's, and they all have a stable rating. Seventeen percent of the top 50 carry AAA ratings, 44 percent have AA ratings, and 39 percent have A ratings. The distribution for all of Standard & Poor's-rated municipalities is much lower, with 4.1 percent in the AAA category, 32 percent in the AA category, 48.7 percent in the A category, and 15 percent in the BBB category.

The 4.3 percent average annual population growth rate in the 50 fastest-growing cities is a good indicator of economic vibrancy and is typically ...

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