Bond rating is upgraded

Wednesday, July 6, 2005 | 9:25 a.m.

Two bond-rating services have upgraded North Las Vegas' rating.

Standard & Poors increased its rating from A to A+, while Moody's Investors Service upgraded the rating from A2 to A1.

Both agencies, as reasons for upgrading the bond rating, cited North Las Vegas' excellent financial operations, diverse tax base and assessed valuation growth, debt and financial position, and economic diversification, according to North Las Vegas Finance Director Phil Stoeckinger.

City officials said the improved bond ratings demonstrate the fiscal responsibility of North Las Vegas. The bond rating works much like a personal credit score helps someone obtain a favorable interest rate. It improves the city's ability to sell municipal bonds to pay for capital improvement projects, officials said.

As part of the bond rating increase, North Las Vegas refinanced existing bonds for water and sewer projects. The refinancing itself saved the city more than $650,000, of which about $86,000 was saved by the new rating, Stoeckinger said.

Among city projects funded by municipal bonds are the Washburn Community Policing Facility, the Justice Facility and the Aliante Library. Moody's upgraded the library bond debt from A2 to A1, officials said.

Cities' bond ratings are based on the ability to repay the principal and interest, officials said.

Henderson, Clark County and the state of Nevada have higher ratings at AA from Standard & Poors and AA2 from Moody's, Stoeckinger said. Las Vegas has AA- from Standard & Poors.