Standard and Poor’s has raised its bond rating for the Town of Holly Springs from AA to AA+, State Treasurer Janet Cowell has informed Town officials.
“This is a significant achievement in light of the nationwide recession and subsequent slow economic recovery and the uproar these events have created in the banking industry,” she wrote Mayor Dick Sears.
Cowell credited the work of Finance Director Mary Hogan, Town Manager Charles Simmons, and other staff, including those of the Finance Department.
“You and the members of the [Council] are to be commended for providing a work environment that attracts and keeps such qualified and dedicated employees,” Cowell told Sears.
Hogan described the bond rating as, in essence, a credit rating. The rating is an indicator of the Town’s ability to repay its debt and also measures the likelihood of defaulting on the debt.
“This rating increase is due mainly to the Town’s strong financial position, which allows us to pay our debt and to do so in a timely manner,” Hogan said.
Town officials indicated the AA+ rating could lead to more favorable interest rates on future borrowing if the Town chooses bond financing over other forms of borrowing.
The Town received its AA rating in February 2011, when its rating was raised from A+. With the new AA+ rating, Holly Springs is just one step away from the highest S&P rating of AAA.