Moody’s Investors Service has upgraded the City of Port Clinton’s issuer and general obligation limited tax (GOLT) ratings to A3 from Baa1 and removes the stable outlook. The city had about $10.7 million in debt outstanding as of Dec. 31, 2022.
The upgrade to A3 status, reported Auditor Gabe Below of Port Clinton this week, reflects substantial improvement in liquidity due to increased revenues across both the general fund and enterprise fund. The city’s improved reserves provide a buffer against potential fluctuations in economically sensitive income taxes, the city’s largest revenue source.
The A3 GOLT rating is the same level as the issuer rating because of the city’s full faith and credit pledge subject.
The Ohio Office of Budget and Management Director Kimberly Murnieks also announced that S&P Global Ratings upgraded Ohio’s issuer default and general obligation bond ratings to “AAA.” Murnieks cited Ohio’s demonstrated commitment to active budget management, building and maintaining reserves, significant state-supported economic diversification efforts, and a belief that the state can maintain better credit characteristics than the U.S. in a stress scenario.
This is the first time that Ohio has been rated “AAA/Aaa” by all three rating agencies.
“Achieving this rating from not just one, but all three major credit agencies is historic,” said Gov. Mike DeWine. “This remarkable financial milestone underscores that Ohio is at the forefront of financial excellence and economic innovation. Our strategies are yielding tangible benefits, making Ohio a prime destination for businesses and families.”
In just over one year, S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings upgraded Ohio’s issuer default and general obligation bond ratings to the highest ratings possible: “AAA/Aaa/AAA.”