Wright City received an A+ bond rating from the S&P Global ratings agency on Aug. 16.
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Wright City received an A+ bond rating from the S&P Global ratings agency on Aug. 16. The rating will allow them to go out for bond on the planned improvements to Roelker Road that were approved with the passage of Prop R during the April 2 election.
The road improvements are coming in conjunction with the construction of Wright City’s new high school on Roelker Road.
The bond rating will allow the city to receive more favorable terms from financiers as they seek terms for an anticipated $6.5 million in municipal bonds allocated for road improvements. Bond ratings range from AAA to BBB- and outlooks are either positive, stable or negative.
Bond ratings are assigned to borrowers, in this case Wright City, on their credit quality and the better the rating, the better the rates a borrower can receive. According to Investopedia, these ratings are used by the agencies to evaluate the strength of a borrower, and the likelihood that they pay their debts and in a timely manner.
Mayor Michelle Heiliger was overjoyed with the results and felt the rating was higher than the city expected, and more importantly, that it would save taxpayers money.
“We are super excited, we could not have done it without the help of WM Financial,” said Heiliger.
The city had also contracted with WM Financial Services out of Maryland Heights to help sort through the city’s finances during the bonding process.
"The 'A+' long-term rating reflects our view of such factors as the city's rapidly growing local economy and robust reserves on a percentage basis," said S&P Global Ratings credit analyst Coral Schoonejans in a press release.
The rating also came with a stable ratings outlook meaning that S&P Global does not expect any changes to that rating in the next six months to two years.
During the Aug. 8 Wright City board meeting, the next steps of the process were discussed including issuing a request for proposal and a potential timeline for the project.
City officials said they hoped to go out for bid in November of this year and award a bid sometime in December.
From there they projected a tentative completion date in May 2025, five months after the new Wright City High School’s opening in January.
Per the bond language, the funds are pledged to improvements on Roelker Road, although upon the completion of that project, any remaining money may be allocated to other road improvements in the city.
