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Davidson News

GO Davidson: Town scores AAA rating

May 28. S&P Global Ratings has given the Town of Davidson its AAA long-term rating for their series 2021 general obligation (GO) public improvement bonds, which means a lower interest rate to finance the voter-approved projects. Davidson is the smallest town in North Carolina to earn the highest rating that the town could achieve.

S&P noted Davidson’s strength in:

—Very strong economy
—Very strong management, with strong financial policies/practices
—Strong budgetary performance
—Very strong budgetary flexibility
—Very strong liquidity
—Very strong institutional framework score

“This is tremendously good news for the Town of Davidson. It not only confirms that the town has sound financial policies and practices and responsible management from elected officials and staff, but also enables the town to further save money due to achieving lower interest rates over the length of the loan.”

—Piet Swart, Finance Director
Town of Davidson

AAA is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies. AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.