Ventnor City Series 2025 General Obligation Bonds Rated AA

The following is excerpted from the bond ratings report issued by Standard and Poor’s Global Ratings:  

VENTNOR CITY SERIES 2025 GENERAL OBLIGATION BONDS RATED AA

Standard and Poor’s Global Ratings assigned its ‘AA” long-term rating to Ventnor’s $20 million series 2025 general obligation bonds (GO) and affirmed the City’s ‘AA’ rating on the City’s outstanding debt.

S&P also affirmed its 1+ short-term rating on the City’s outstanding bond anticipation notes (BANS).

The S&P rating reflects their opinion of Ventnor City’s general creditworthiness and that S&P also considers the City’s market risk profile, to be low based, upon the City’s strong legal authority to issue long-term debt.

The City’s credit strengths are its stable financial performance and reserve management, with a proven track record of sustaining reserves above 20% of revenues, which is integral to the rating given the City’s coastal location and flood risks.

Additionally, the report indicates consistently positive financial performance spurred by conservative budgeting and revenue growth from a stable tax rate due to increasing economic growth leading to improved reserves. 

The City experienced a modest decline in its fund balance at the end of 2024, due to an outstanding Federal Grant that had not yet been realized. That grant has now been received, and the City’s reserves are expected to increase and exceed $10 million in fiscal 2025.

Overall, the City’s outlook is “Stable” supported by stable financial performance and robust reserves, providing greater cushion to absorb high fixed charges and unexpected costs, particularly related to environmental risks associated with the City’s coastal location.

Note: “Individual investors should consult with their own investment advisors and refer to the Preliminary Official Statement dated June 3, 2025 in regards to the City’s Series 2025 Bonds.”