After a recent review of the Andalusia Utility Board's finances the board's bond rating received an A- from Standard and Poor's Financial Services. This was an improvement from the last rating of BBB+.
According to a press release from Andalusia's city clerk, Standard and Poor's ratings are used to assess the financial condition of various companies and to have a direct impact on capital costs, such as interest rates, insurance and issuance fees.
The higher the rating, the lower the fees and charges of the company's capital.
"During the review process it became very evident that Standard and Poor's was interested in learning about our rate sturcture and how it relates to our maintenance program and future capital projects, "said Mayor Earl Johnson.
The report from the review listed the utility board management's ability to maintain and improve the integrity of the board's assets as a basis of the improved rating.
"The financial condition of a utility system is much more than what the various financial reports reflect, which incidentally, are very good. The age, capacities, and maintenance of various systems as well as constant evaluation of those systems to identity weakinesses and future capital projects to address potential problem areas, regulartory compliance records, all affect the board's finances." said Mayor Johnson.
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