Standard and Poor’s Rates Mobile Financial Management As Good
March 22, 2013
The City of Mobile’s General Obligation outlook was upgraded to AA- (stable) by Standard & Poor’s (S&P) Rating Services.
The upgrade was a result of the penny sales tax increase approved last year and the city’s financial management during a turbulent economic downturn. They credited good governance that created a strong financial position as reason for the increase. They also noted Mobile’s role as a regional service, manufacturing, and trade center, and its moderate debt burden as key factors in the improved outlook.
“This is an incredible validation that the hard work that we are putting in is paying off,” said Mobile Mayor Sam Jones. “How rating services such as S&P see our finances has a major impact on what we can get accomplished as a city. This positive news is most welcome for our citizens. This is another tool in our kit as we work to bring more jobs to Mobile.”
At a presentation to the City Council, the city’s financial advisor Louis Cardinal announced that Mobile had added 1,000 jobs during S&P’s inspection process. That made Mobile County the state’s leader in job creation last year. That figure does not include the jobs that will be created through the construction and ongoing operation of the Airbus aircraft assembly center at Brookley Aeroplex.
“Despite the stress of the recession, Mobile was able to put on activities like the MoonPie Over Mobile and BayFest, which drives high retail sales,” Cardinal said.