Standard & Poor’s Reaffirms Evansville “AA-“Bond Rating

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CITY OF EVANSVILLE
ONE N.W. MARTIN LUTHER KING, JR. BLVD.
EVANSVILLE, INDIANA 47708
OFFICE OF THE MAYOR
LLOYD WINNECKE

October 16, 2012

Standard & Poor’s Reaffirms Evansville “AA-“Bond Rating
Administration Addresses Concerns of Audit Findings

EVANSVILLE, IN – The City of Evansville’s Standard & Poor’s “AA-” bond rating will remain unchanged despite a disclaimer opinion issued by the State Board of Accounts (SBOA) last month on the city’s 2011 audit findings.

Some members of the City Council expressed concern that the disclaimer – caused primarily by problems during the conversion to a new financial software system – would result in a lower bond rating, making it more expensive for the city to borrow money for future capital projects.

Mayor Lloyd Winnecke directed City Controller Russ Lloyd, Jr. to contact officials at Standard & Poor’s to inform them of the 2011 audit findings and to explain the City’s corrective plan of action. Today John Sauter, a U.S. Public Finance Ratings Specialist at Standard & Poor’s Ratings Service, informed our administration that there will be no change in the City of Evansville bond rating.

“I am pleased with the decision made by Standard & Poor’s. After considering the City’s 2011 audit findings, the ratings service understands that the City’s financial position remains strong,” said Mayor Winnecke. “S&P is also comfortable that the City’s computer software issues are being fully addressed and the accounts are now reconciled.”

City Controller Lloyd said the review by Standard & Poor’s was a courtesy to the city. Following a conference call, Lloyd said, “S&P appreciated the city’s proactive management of the issue and that city officials reached out to them to explain the State Board of Accounts audit findings and satisfactorily answered all of their questions.”

As a result, Lloyd said when the city goes to market issuing bonds for new debt or to refinance debt the city will go through the regular rating review process.

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5 COMMENTS

  2. The rateing will be addressed when the sewer bonds are sold. Don’t expect a happy outcome with the pensil and paper books. The sboa didn’t say there were no problems, there were plenty. Who fesses up to the violations of law with the mixing of funds back and forth between accounts, and multiple overdrafts? Are there any consequences to breaking the law or is that a “my bad”. The sboa also said the books were so cooked they couldn’t verify if funds were missing or not, good job JW.

  3. When are the tough questions going to come about this major screw up? Weinzapfel is laughing and Wienzapfel-lite is sweating!!! How is that cover up going!!!!!!!!!!!!!!!!

  4. So a less favorable bond rating is still a possibility in the future! Wake up city management, not out of the woods yet with this one.

  5. Don’t take these buffoons word for this. You should have contacted the bond rating agencies themselves. Also, Moody’s can still give them a bad rating. Not to mention that anyone can tip off the rating agencies about the disclaimer at anytime!

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