Queen Creek joins Phoenix as S&P credit rating score comes in

Queen Creek, Arizona: Standard & Poor’s (S&P) Rating has completed an independent review of Queen Creek’s credit rating, giving it a AA+ rating with a stable outlook. This is the same rating given by S&P to Phoenix.

“This rating is really an indicator that the Town has been, and continues to be in a strong financial condition,” stated Queen Creek Mayor Julia Wheatley. “As a Council, we are committed to making financially sound decisions while also meeting the needs of a growing community. It is so important that we continue to invest in our priorities like public safety and infrastructure, while also doing so in a financially responsible manner.”

The Town has two ratings with S&P, one for the Town's overall credit, referred to as the Issuer Credit Rating (ICR) and one for debt issued with excise taxes as the payment pledge for the debt – both ratings are AA+ with a stable outlook. 

“The reports affirm that the Town is in solid financial condition, and we continue making progress on our path to a 'AAA' rating,” stated Chief Financial Officer/Deputy Town Manager Scott McCarty. “The Town Council has made a series of key financial policies and practices that have resulted in our strong financial condition. As a young community that is growing at a rapid rate, the report notes the debt that has been issued to provide infrastructure needs – and articulates that the burden is manageable due to sound financial policies and smart decisions.”

How are bonds rated?

Bond ratings are assessments of the creditworthiness of a bond issuer, determining the risk that the issuer will default on its debt obligations. These ratings are typically assigned by major rating agencies, such as Standard & Poor's (S&P), Moody's, and Fitch. The ratings are divided into two main categories: investment-grade bonds and non-investment-grade (junk) bonds.

Investment-Grade Bonds

Investment-grade bonds are considered to have low to moderate credit risk. These bonds are issued by entities that are seen as financially stable and likely to meet their debt obligations.

S&P/Fitch Ratings:

AAA: The highest quality, with minimal credit risk.

AA: Very high quality, but slightly more risk than AAA.

A: High quality, with low credit risk, though more susceptible to economic changes.

BBB: Adequate quality, but with moderate risk of default under adverse economic conditions.