River Forest’s bond rating upgraded to AA+

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Updated: February 22, 2012 12:14PM

River Forest received word last week that Standard & Poor’s Rating Services upped its bond rating from AA to AA+, a sign of the town’s strong fiscal health.

A report from the ratings agency says the improved score was the result of residents’ high income, as well as the village’s strong reserves and its “low-to-moderate debt levels.”

“We expect the village to maintain its very strong reserves through continued balanced annual budgets,” said John Sauter, an S&P credit analyst, in the report.

The village had $5.4 million in the bank, according to am April 30, 2011, audit of its finances. That number is fluid, Village Administrator Eric Palm noted, but the village still has a healthy level of reserves.

Sauter also expressed confidence in the village’s ability to monitor and appropriately react to any changes in revenues or expenditures. This, he claimed, would also help maintain its fiscal stability.

The rating upgrade means the village is just one notch away from the highly coveted AAA rating — the highest score issued. The scores measure the strength of a debtor’s ability to meet its financial obligations.

The village last issued bonds in 2008 to pay for water and sewer improvements and to fund street repairs. For both projects, $2.3 million in bond debt was issued.

The bonds are scheduled to be repaid by 2015.