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City of Bloomington Utilities Bond Ratings Slightly Downgraded

FOR IMMEDIATE RELEASE
January 21, 2017

For more information, please contact:
Jeffrey Underwood, City Controller, 812-349-3416, underwoj@bloomington.in.gov

City of Bloomington Utilities Bond Ratings Slightly Downgraded

Bloomington, Ind. - A recent review by Standard and Poor Global Ratings (S&P) conducted prior to issuing the bonds for the upcoming City of Bloomington Utilities water and sewer improvements saw an A rating for the water utility and A+ for the sewer utility. This rating is a slight decrease from the last time bonds were issued on behalf of the utility.

A report from S&P, dated January 18, 2017, cites the application of new criteria which weigh economic factors in the community and declining debt service coverage and liquidity more heavily than when determining ratings in the past. This has had more of an affect on the water utility rating than the sewer, yet both remain well within "investment grade" quality in the "Upper Medium Grade" classification.

S&P noted the outlook on the ratings is stable, and reflects expectations that following the implementation of rate increases, debt service coverage and liquidity levels will stabilize.

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