LITTLE ROCK RECEIVES POSITIVE BOND RATINGS FROM MOODY’S and STANDARD & POOR’S

(Wednesday, February 21, 2007) – The City of Little Rock’s financial stability and plans for the future have been viewed favorably by the two leading bond rating bodies. The rating was done in preparation for the issuance of over $3 million in Waste Disposal and Improvement revenue bonds. Moody’s Investors Service assigned an A1 rating, while Standard & Poor’s Investor Service raised its rating to an “A” (the rating had previously been “A-”).

Both services noted the consistent financial operations and satisfactory debt service coverage in making their assessments. They also noted a stable customer base for the City of Little Rock.

“I was very pleased by this news,” said City Manager Bruce T. Moore. “It is the result of financial policies that the City Board has implemented over the past few years. It is also due to the outstanding efforts of Finance Director Bob Biles and his staff. They have worked hard to ensure that the City has sound fiscal procedures. I also want to credit the Sanitary Sewer Committee and the staff of Little Rock Wastewater Utility as they developed a fiscally sound project. These combined efforts of good stewardship ensure that the taxes and fees are being maximized in an effort to better serve Little Rock citizens.”

Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Such independent credit ratings and research also contribute to efficiencies in fixed-income markets and other obligations, such as insurance policies and derivative transactions, by providing credible and independent assessments of credit risk.

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