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Oro Valley's "AA-" bond ratings reaffirmed by Fitch Ratings and Standard & Poor's

May 8, 2015

The Town of Oro Valley received a favorable bond rating review report from Fitch Ratings reaffirming the Town’s “AA-“ bond rating with a stable outlook on the Series 2005 Excise Tax Revenue Bonds and the Series 2007 Municipal Property Corporation Excise Tax Revenue Refunding Bonds. The Town also received a favorable bond rating review report from Standard & Poor’s (S&P), reaffirming the Town’s “AA-“ bond rating with a stable outlook on the outstanding Municipal Property Corporation and Excise Tax Revenue Bonds.

“We are pleased that Fitch Ratings and Standard & Poor’s has reaffirmed the Town’s strong, investment grade bond rating of ‘AA-‘ with a stable outlook, specifically noting our solid financial position, strong cash reserve balances and low debt burden,” said Finance Director Stacey Lemos. “Maintaining solid bond ratings often results in lower financing costs when the Town issues bonds to pay for large capital and infrastructure projects.”

The Fitch Ratings report spoke favorably of the Town’s conservative fiscal practices, favorable debt profile and solid financial position: “While these revenues are derived from a fairly broad base, the town's income is almost entirely dependent upon economically sensitive revenues. Fitch believes the financial flexibility provided by the strong general fund balances that the town maintains offset much of this credit concern.”

The rating report from Standard & Poor’s went on to note the Town’s strong debt service coverage and increasing revenues.

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