PRESS RELEASE FOR IMMEDIATE RELEASE 6/16/2011
S&P affirms Junction City’s A- Bond Rating
Jeff White, Managing Director -Columbia Capital Management, LLC, announced today that Standard & Poor’s Bond Rating Committee had concluded their processes and affirmed the A minus rating with a stable outlook for the City of Junction City. S&P Bond Analyst Jim Tchou indicated that "the Committee was impressed with new management's efforts to get the City moving in a positive direction."
The refinancing of over five million dollars of debt payments by the City before September 1, 2011 was recommended by the recent Fiscal Transformation Plan. A similar refinancing will also be necessary during fiscal year 2012. The plan calls for the City to have everything in order in 2013 to prevent further refinancing of the city’s debt.
“This announcement is very positive news for the City” reports City Manager Gerry Vernon. He further states: “maintaining the current A- rating should result in significant interest cost savings to the City. This is a great first step on our road to recovery.” It is expected that Assured Guaranty will agree to insure the bonds. If that occurs, the city’s bonds will be more marketable to investors.
The bond rating report and bond insurance premium indication should be available in a few days.