City of Utica, Media - 08/11/08 - BBBeautiful rating upgrades

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David R. Roefaro, Mayor

City of Utica, New York

08/11/08 - BBBeautiful rating upgrades

Questions:

Angelo Roefaro, Public Relations

315.792.0100

Fitch upgrades Utica's bond rating to 'BBB'

S&P rates us 'BBB' as well, and Moody's rates us an impressive 'Baa2'

August 11, 2008- (Utica NY) – A city's bond rating ranks a city on the basis of its debt, investment risk, and other financial factors that include timely payments of their interest and principal for short and long-term leverage. Bond rating agencies such as Fitch use a grading system to signify the 'health' of a city's financial condition and to denote where it may be going. In Utica's case, an upgrade to 'BBB' is considered investment grade, and optimistic.

Utica City Comptroller Michael T. Cerminaro and Utica Mayor David R. Roefaro announced today that Fitch Ratings service has notified the City of Utica that it has UPGRADED the City of Utica's bond rating for its upcoming $3.45M pension obligation (serial) bond, as well as, the city's outstanding $52M obligation bonds to a "BBB" rating, with a Stable outlook.

City Comptroller Cerminaro said that he, along with Mayor Roefaro and staff members from both offices, have had ongoing discussions with various rating agencies on the upcoming City of Utica bond sale, as well as the financial outlook for the City of Utica going forward.

Mayor Roefaro outlined his administrations objective of initiating a comprehensive Master Plan blueprint for the City of Utica which would encompass all facets of city government now, and into the future.

Mayor Roefaro also put forth his administrations efforts to secure potential development for Downtown and other areas throughout the city, as well as a progress report on active ongoing discussions with several developers and investors interested in the City of Utica.

Comptroller Cerminaro also said that the city's progress with strong balanced budgets over the past several years, along with emphasis on replenishing the Water Capital Trust fund, has bode well for the City's financial outlook. Cerminaro said that the upgrade to 'BBB' reflects the city's success in maintaining its adequate financial position.

Fitch Ratings noted that the City's financial position has improved significantly since the fiscal problem days of the early '90's when Utica's credit rating hit an all-time low.

Comptroller Cerminaro said that this marks a string of increasing financial outlook upgrades for the City of Utica over the past two years from Fitch Ratings and Moody's Investor Services, with Standard & Poor's holding steady with a triple B rating.

The 'BBB' rating means the City of Utica is less likely to default on payments

in the present and the short term future. Therefore, when bonding or

borrowing needs arise, the City of Utica will pay lower interest rates and

attract many more investors. Simply put, we are less risky of an

investment, borrower, and municipality than we were in January.

According to Fitch, their rating definitions and the terms of use of such ratings are available on their public site, 'www.fitchratings.com'.

Contributing: Michael Cerminaro