City of Kingman Receives “AA” Fitch Rating

Published by The Bee News

May 26, 2022

Reading Time: ( Word Count: )

KINGMAN, Ariz. – Fitch Ratings recently performed an annual surveillance review of the city’s credit worthiness and issued a press release affirming the City’s Excise Tax Revenue Obligations and Issuer Default Rating at ‘AA’ with a stable rating outlook. A rating at this level is a large contributor to receiving an excellent borrowing rate when debt is issued.

Fitch Analytical Conclusion, “The ‘AA’ rating is underpinned by the city’s currently high level of financial resilience that Fitch expects will be maintained through future economic cycles. The ‘AA’ rating also reflects the city’s post-pandemic revenue growth prospects above inflation, solid expenditure flexibility and moderate carrying costs despite future direct debt plans, and moderate revenue-raising ability. Fitch expects the long-term liability burden to remain moderate.”

CREDIT PROFILE

Kingman serves a larger regional population base as the economic, healthcare and commercial center for the surrounding, largely rural Mohave County. Education and health services, manufacturing, trade, transportation/utilities and government are all major employment sectors. The Kingman Regional Medical Center is the city’s largest employer with roughly 1,800 employees.

The city’s proximity to major transportation corridors and to the California, Las Vegas, Phoenix markets has attracted additional industrial investment, and there has been expansion of certain existing and new small to mid-size manufacturers. Economic development efforts focus on further manufacturing/ logistics industrial businesses that may require rail transportation at the city’s industrial park and distribution/delivery needs via the municipal airport. Tourism and outdoor recreation activity are also large contributors to the city’s economy given the nearby Grand Canyon and the Colorado River

Trends for city building permits for residential construction remain strong for the second fiscal year, with both valuation and the number of permit totals increasing by approximately 36% yoy between fiscal 2020 and 2021. Reflective of the solid economic gains realized in recent years, the city’s net limited property assessed valuations (LPV) grew by a healthy 5.1% CAGR over the last five fiscal years (fiscals 2017-2022).

In addition to the sources of information identified in Fitch’s applicable criteria specified below, this action was informed by information from Lumesis.

You May Also Like…

0 Comments

Submit a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0
Your Cart
Your cart is empty.

Discover more from The Buzz -The buzz in Bullhead City - Lake Havasu City - Kingman - Arizona - California - Nevada

Subscribe now to keep reading and get access to the full archive.

Continue reading