While many communities have had to sacrifice their credit ratings by raiding Rainy Day Funds in order to stay afloat during the last several lean financial years, Chelsea remains trustworthy and financially strong according to Wall Street credit agencies.
Standard & Poor’s (S&P) reaffirmed the City’s credit rating at “A+” after an extensive review last month.
In particular, S&P cites the City’s management as a credit strength, producing a strong financial position and good management policies. Offsetting that and holding the credit rating from rising further are high poverty in the community and the City’s large, unfunded long-term liabilities. “We are maintaining our highest credit rating ever, but do believe we can and should do better,” said City Manager Jay Ash.
Ash complimented the role of the City Council in managing City government, and the many accomplishments the City has enjoyed over recent years.
“Our story is a great one, especially given how tough things were in decades gone by,” he said. “We know we have more to accomplish, though, and will continue to improve upon all that has happened to build a stronger City government and a more vibrant community.”
S&P is one of the largest credit rating agencies in the world, and it describes an ‘A’ rating as having a “strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.”
The inclusion of a ‘+’ on the City’s ‘A’ rating indicates that Chelsea is at the top end of that particular level. The only higher ratings given by S&P are ‘AA’ and ‘AAA.’