CITY OF HIGHWOOD THRILLED TO ANNOUNCE MODIFICATION TO RECENT STANDARD & POOR CREDIT RATING UPGRADE

July rating upgraded from A- to A jumps to AA

HIGHWOOD, IL (DECEMBER 2013) – The City of Highwood is proud to announce that it received another positive modification to its Standard & Poor long-term credit rating upgrade from this past July. The City has impressively moved from an A to AA on its newly issued general obligation debt and refunding bonds. This is Highwood’s second rating increase this year, going from an A- to an A in July 2013. The outlook on the City’s ratings is stable and strong, and is expected to continue upwards.

“We consider Highwood’s economy to be strong, and the City’s budgetary flexibility very strong for the fiscal 2013 with a general fund surplus,” says Walter M. Stock, Managing Director at PNC Capital Markets, LLC Investment Banking – Public Finance.

The City of Highwood’s improved financial standing and stable outlook reflect Standard & Poor’s expectation that the rating will not change over the next two years as the City maintains very strong budgetary flexibility, adequate budgetary performance, and very strong liquidity.

The rating identified that the City intends to use conservative budgeting methods and management to produce balanced General Fund results. S&P also cited Highwood’s participation in the Chicago metropolitan area economy, the good income levels, very strong market value per capita, and low overall debt burden as contributing factors in the upgrade.

“This rating upgrade couldn’t come at a better time as the City is evaluating various financing options for infrastructure improvements,” states Kelly Zabinski, Finance Director with the City of Highwood. “This bond rating increase is confirmation that we are on the right path in our commitment to long-term, comprehensive operational and financial planning.”

“We have made great strides in improving Highwood's financial health,” says City Manager Scott Hartman. “Through the diligent efforts of our staff over the last two fiscal years and continuing efforts to promote further growth in 2014, the City of Highwood has established a solid financial foundation upon which we can continue to build for years to come.”