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By Martine Wolfe-Miller, Communications Officer
MOUNT PLEASANT, SC (October 22, 2015) - The Town of Mount Pleasant’s general obligation bond rating was recently upgraded from Aa1 to Aaa by Moody’s Investors Service. This is the highest rating given by Moody’s. This places the Town in a prestigious category with a Triple A bond rating for both Standard & Poor’s and Moody’s. Mount Pleasant and Charleston are the only two municipalities in the State of Carolina with a Triple A rating from both agencies.
Moody’s Investors Service’s upgraded rating reflects the town’s healthy and growing tax base, its desirable location, its proximity to the Charleston metro region, and a sound financial position with ample reserves and liquidity. Both Moody’s and Standard & Poor’s view the Town as being strong and stable in its financial outlook.
“This upgrade is great news for Mount Pleasant. It places the Town in an elite class and underscores the quality of our management decisions. I would like to congratulate our Town Administrator Eric DeMoura and his talented staff for reaching this very important financial milestone,” said Mount Pleasant Mayor Linda Page.
“Over the last several years, the Town has been very frugal and has had to make hard choices. To control costs, we limited operational expenditures and implemented many innovative service improvements. We increased revenues to address failing infrastructure, which if left unchecked will damage the quality of life and the economic viability of our Town,” added Mayor Page. “Our proactive stance paid dividends during the recent 1,000-year flood, which devastated South Carolina but left Mount Pleasant unscathed. We reported the highest rainfall in the state while sustaining minimal impact in the low lying areas of our community. This can be attributed in part to the implementation of our capital improvement plan and stormwater projects.”
“This upgrade is significant,” said Councilmember and Finance Committee Chair Chris O’Neal. “This rating reflects the proactive stance that the Town has taken in addressing unfunded liabilities that plague many American communities. An upgrade also results in savings to the taxpayers. For example, when borrowing money for a project, the difference between an Aa1 and Aaa rating normally results in a reduction to the interest rate of about 10 basis points or .1 percent. This amounts to approximately $257,082 on a $25 million bond over 20 years. It is also important to note that this rate applies to all Town borrowing. ”
For more information, see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. For more information on the Town of Mount Peasant Finance Division, visit us online at www.tompsc.com.