Douglasville, GA GO Debt Rating Raised To 'AA' From 'AA-' On Growing Tax Base, Stronger Reserves

WASHINGTON D.C. (S&P Global Ratings) May 7, 2021--S&P Global Ratings raised its long-term and underlying ratings to 'AA' from 'AA-' on Douglasville, Ga.'s outstanding general obligation (GO) debt and its GO equivalent debt issued on its behalf by the Douglasville Convention&Conference Center Authority. The outlook is stable. "The rating change reflects growth in the local tax base, which resulted in per capita market values growing nearly $28,000 since 2018 (to more than $115,000)," said S&P Global Ratings credit analyst Christian Richards. In addition, the city has consistently added to reserves, with available reserves doubling to $17.4 million from $8.7 million between fiscal years 2016 and 2020, or increasing from 34% of expenditures to 54% over the same time.

...May 7, 2021 WASHINGTON D.C. (S&P Global Ratings) May 7, 2021--S&P Global Ratings raised its long-term and underlying ratings to '##' from '##-' on Douglasville, Ga.'s outstanding general obligation (GO) debt and its GO equivalent debt issued on its behalf by the Douglasville Convention & Conference Center Authority. The outlook is stable. "The rating change reflects growth in the local tax base, which resulted in per capita market values growing nearly $28,000 since 2018 (to more than $115,000)," said S&P Global Ratings credit analyst Christian Richards. In addition, the city has consistently added to reserves, with available reserves doubling to $17.4 million from $8.7 million between fiscal years 2016 and 2020, or increasing from 34% of expenditures to 54% over the same time. The outstanding GO debt is secured by ad valorem taxes that may be levied, without limit as to rate or amount, on all taxable property within its jurisdiction. The GO equivalent debt is limited obligations payable...

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