Hernando County bond rating lowered to ‘A+’ from ‘AA-’
S&P Global Ratings has lowered its issuer credit rating (ICR) and underlying rating (SPUR) to ‘A+’ from ‘AA-’ on Hernando County’s 2010 non-ad valorem revenue* refunding bonds. This change in grade is due to past budgetary policies resulting in expenditure growth outpacing revenue for consecutive years.
The Hernando County Board of County Commissioners (BOCC) has made a number of changes to, and is dedicated to improving, its budgetary process. The BOCC has recently adopted a new policy requiring future County expenditures to equal revenue and will continue to work on budgetary improvements by planning for long-term financial modeling. If followed, this financial model should allow the County to increase its bond rating in the future.
*Non-ad valorem revenue is considered all governmental revenue other than ad valorem property tax revenue.