NORTH WILDWOOD–In a letter dated July 3, 2014, Standard & Poor’s Ratings Services (S&P) announced that it has raised this City’s credit rating from “A+” to “AA-” while affirming the stable outlook.
This is especially impressive since S&P is one of the “big three” credit rating agencies (CRAs), along with Fitch and Moody’s.
What does an improved rating mean for the City?
A credit rating is the product of a review of an entity’s debt. The result is an expression of how likely a CRA thinks it is that the entity will pay back its debts.
A credit rating influences the interest rates the City will have to pay on its debt. If current debtholders are confident that the debt will be paid back, they do not have to price the chance of default into the interest rate.
In practical terms this means that when the City goes out to bid for projects and/or materials like beach replenishment, it will get the best prices at the best interest rates.
Mayor Patrick Rosenello said, “We are pleased that our stable management of North Wildwood has resulted in this rating increase that will save taxpayers money in the form of lower interest rates when the City is making critical capital improvements.”
