McPHERSON — The City of McPherson was interviewed by the S&P Global Ratings agency on March 24, 2025, relative to the upcoming issuance of the Series 142 of 2025 GO Bonds. This Series is $3.3 million in GO Bonds that will finance the Turkey Creek Golf Course Irrigation project and the Veranda West Paving and Sanitary Sewer Improvement District. After providing multiple source documents to the rating agency, the City promptly received the results of the review.
On April 1, 2025, the City of McPherson received notice from S&P that the City was able to retain a rating of “AA- Stable.” The rating system looks at seven key weighted factors in determining a final rating. These factors include institutional framework, economy, management, budgetary flexibility, budgetary performance, liquidity and debt and contingent liabilities. According to S&P, the City of McPherson was either strong or very strong in the areas of financial management practices, budgetary flexibility, liquidity, budgetary performance and institutional framework.
The news is positive for the City of McPherson as borrowing capabilities and favorability of future bond interest rates are directly tied to the City’s credit rating. Considering recent rating downgrades and low ratings in several government sectors and agencies, the rating indicates that the economy, finances and financial management practices of the City of McPherson have been looked at as favorable as it considers all weighted rating factors.
Maintaining this favorable rating affirms that McPherson is looked at as a positive, low-risk entity when it comes to investors interested in buying municipal bonds. Maintaining a high credit rating means McPherson will continue to receive favorable interest rates and steady continued borrowing capabilities. Through strong debt management policy, sound borrowing procedures, and continued high credit ratings, the City has been able to reduce the pressure on Ad Valorem tax rates for the citizens of McPherson.
Questions can be directed to Richard Miller, Finance Director, at (620) 245-2535 or by email at richardm@mcpcity.com.