City of Piqua earns AA- inaugural bond rating

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The City of Piqua team meets with advisors as they present to S&P Global Ratings to earn a AA- bond rating earlier this month. Pictured, from front left, are Alyssa Dorsten of Baker Tilly, Economic Development Director Chris Schmiesing, City Manager Paul Oberdorfer, Emmett Kelly of Frost Brown & Todd, Finance Director Jerald O’Brien, Finance & Tax Manager Kayla White, Assistant City Manager Amy Welker and Brian Cooper of Baker Tilly. (Submitted photo)

PIQUA – The City of Piqua is proud to announce that S&P Global Ratings (S&P) has assigned an inaugural bond rating of AA- to the City’s General Obligation (GO) bonds. This strong rating represents S&P’s confidence in Piqua’s financial health, management practices and economic stability.

“The rating reflects Piqua’s robust reserves, economic growth and manageable fixed costs,” S&P Credit Analyst Mona Elfar said in a release. “The City’s consistently increasing revenues and management’s conservative budgeting approach positions the city for financial stability and flexibility.”

Piqua City Manager Paul Oberdorfer said the AA- rating is a testament to the City’s proactive approach to maintaining financial health and strategic planning.

“We are thrilled to receive this AA- rating from S&P,” Oberdorfer said. “This achievement underscores our commitment to fiscal responsibility and prudent financial management. It will enable us to secure favorable borrowing rates, ultimately benefiting our community through continued investment in essential infrastructure and services.”

According to S&P’s website, credit ratings are forward-looking opinions about an issuer’s relative creditworthiness. They provide a common and transparent global language for investors to form a view on and compare the relative likelihood of whether an issuer may repay its debts on time and in full.

“The AA- rating from S&P demonstrates the City of Piqua’s dedication to providing high-quality services and fostering a vibrant community,” said City of Piqua Finance Director Jerald O’Brien, CPA, MBA, CGFM. “As we move forward on sustainable investments in infrastructure, public safety and community development, this rating will represent significant savings on interest payments.”

The bond rating will be useful as the City pursues funding for the facilities improvements and capital projects, recently approved by the Piqua City Commission. The City of Piqua team worked with municipal advisors at Baker Tilly and counsel from Frost Brown Todd on the application and interview process. S&P will review the City of Piqua’s disclosures and financial audit annually as it maintains its bond rating status.