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Standard and Poor’s Reaffirms City of Henderson’s AA+ Bond Rating

May 27, 2020
FOR IMMEDIATE NEWS RELEASE
PLEASE CONTACT KATHLEEN RICHARDS, (702) 267-2051

Henderson, Nev. – Standard and Poor’s (S&P) Global Ratings has reaffirmed the City of Henderson’s AA+ long-term bond rating with a stable outlook, the highest rating among the incorporated cities in Nevada.

“The City of Henderson’s AA+ bond rating is a reflection of our prudent fiscal management and proven capacity to meet our financial commitments,” said City Manager/CEO Richard Derrick. “The high bond rating will enable the City to get a lower interest rate for the tax-neutral general obligation bonds that will be issued to fund projects that include the west Henderson police station and training facility, rehabilitation of existing parks and recreation facilities and transformation of the Henderson Pavilion into a multipurpose performance and event center.”

The S&P Global Ratings report notes that although there are risks related to the COVID-19 pandemic and budgetary pressures due to the majority of Nevada cities being anchored in tourism, the City of Henderson continues to exhibit strong performance metrics. S&P analysts say they “believe the city’s very strong reserve and liquidity positions provide a substantial cushion to absorb the near-term projected revenue declines. The city has benefitted from its growing local tax base and correlated operating revenues in the last several years, allowing the city to build up its accumulated general fund and financial stabilization reserves.”

The report names several factors that contributed to Henderson’s AA+ bond rating including a very strong economy that is a direct outcome of the City’s economic diversification and business recruitment efforts, which have resulted in such projects as the Google data center, Haas Automation manufacturing facility, the Raiders Headquarters and Practice Facility, Amazon fulfillment center and the future Henderson Event Center. Other contributing factors noted in the report are:

• Very strong management, with strong financial policies and practices under the Financial Management Assessment methodology
• Very strong budget flexibility and liquidity, with an available fund balance in fiscal year 2019 at 19% of operating expenditures
• Adequate debt and contingent liability profile, as well as low overall net debt at less than 3% of market value
• Commercial building permit count increase of 16.1% in 2019 with residential permit count remaining relatively steady

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