SALISBURY — Standard and Poor’s has upgraded the city of Salisbury’s bond rating for the second time this year.
A city’s bond rating helps measure financial health and influences the cost of borrowing money. On Thursday, S&P upgraded the Salisbury’s general obligation bonds rating from AA- to AA. In their rating opinion, S&P stated the city’s overall budgetary performance has been strong.
In August, S&P upgraded the rating one notch from A+ to AA-.
Two years ago, the city was spending more than it was taking in. Standard & Poor’s said in its August ratings report that the city had reversed that trend and strengthened its financial foundation.
The agency attributed the improvement to management’s actions, including raising revenue and budgeting expenditures more conservatively.
“This is a testament to the continued hard work of our city team over the last two years,” City Manager Doug Paris said. “They have done a great job.”
Standard & Poor’s also commented in both rating opinions about the city’s low level of outstanding debt, which is 1 percent of market value. Both rating opinions also gave a stable future outlook.