GULF SHORES, AL — On Monday, Mayor Robert Craft and members of the City Council announced that the nation’s largest credit rating agency, Standard & Poor’s Ratings Services, has upgraded the City of Gulf Shores’ long-term bond rating from AA to AA+.

“This rating upgrade reflects the hard work of our staff and the commitment of this administration to responsible budgeting practices, stable financial management, and diversified economic growth,” Craft said. “This dedication has helped us establish a solid financial foundation that will help us become a more sustainable community and achieve the goals within Vision 2025.”

The rating is S&P’s second highest rating for long-term bonds and indicates the City has a “very strong capacity to meet its financial commitments. S&P identified Gulf Shores’ very strong local economy, rising property values, and ongoing positive tourism and economic development activities as strong economic indicators.

“The rating revision reflects the city's strong conservative budgeting which has maintained and improved fund balance levels,” Standard & Poor's credit analyst Edward McGlade said. “And its improved budget performance is the main factor behind the upgrade.”

Additionally S&P’s counterpart, Moody’s Investment Services, has affirmed the City’s Aa2 bond rating, a move that will save Gulf Shores over $500,000 by refunding $8.8 million of outstanding debt at lower interest rates. According to Moody’s, the Aa2 rating reflects a solid financial position marked by sizeable General Fund reserves in excess of 50 percent, conservative budgeting practices and formalized General Fund balance policies. The rating also takes into consideration the city's tourism-based economy, average wealth levels and manageable debt burden.

“These ratings confirm that the economic future of Gulf Shores is bright,” Finance Committee Chairman, Jason Dyken said. “As we look at future capital improvement projects, these ratings can bring significant savings to our community by giving us access to financing options at a much lower rate.”