Ferndale Retains A+ Bond Rating with 'Stable Outlook'

Ferndale gets an A+.

Standard & Poor's, the city's bond-rating agency, has affirmed Ferndale's A+ rating and labeled the city with a "stable outlook." A bond rating, essentially, is like a city's credit score. The higher the bond rating, the less expensive interest rates are on issued bonds.

A city may issue bonds for infrastructure purposes — sewer pipes, roads, parks and libraries — but not for operational costs. Ferndale interim City Manager Mark Wollenweber said the city will not be issuing any bonds, but getting the A+ rating affirmed is a positive mark, he said.

"The ability to maintain (the A+ rating) in these hard times is that much more impressive," Wollenweber said.

In 2007, Ferndale jumped from BBB+ to A+, skipping three ratings. "There is no jump this time," Wollenweber said. "In 2007, the economy was in better shape."

"Fiscally, this is good news," Councilman Scott Galloway said. "It tells taxpayers we're pretty good stewards of their money."

The highest rating Standard & Poor's issues is AAA+, and the lowest is B-.