Cape Coral Bond Rating Just Raised to A+

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Cape Coral economic news. S&P raised Cape Coral’s series 2006/2007 GO bonds to “A+” from “A”.

NEW YORK (Standard & Poor’s) April 4, 2014–Standard & Poor’s Ratings Services
said that it raised its underlying rating (SPUR) on Cape Coral, Fla.’s series
2006 and series 2007 special obligation revenue bonds to ‘A+’ from ‘A’. The
outlook is stable.

“The upgrade is based on our local GO criteria released Sept. 12, 2013,” said
Standard & Poor’s credit analyst Edward McGlade. “The rating reflects our assessment of the city’s very strong liquidity and strong economy,” he added.

The stable outlook reflects Standard & Poor’s view of Cape Coral’s high fixed
cost as a percentage of its budget. The city’s strong–although
weakened–reserves have enabled it to withstand the downturn in the local
housing markets. It is unlikely that Standard & Poor’s will change the rating
over the outlook horizon as it expects the underlying factors to remain
substantially the same.

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