S&P Credit Rating Model: U.S. Local Governments General Obligation Credit Scoring

S&P Global Ratings uses the U.S. Local Governments General Obligation Credit Scoring Model to generate a standardized credit analysis to assist in assigning and surveilling U.S. local government general obligation (GO) ratings based on the applicable criteria methodology.

Purpose Of The Model

The U.S. Local Governments General Obligation Credit Scoring Model applies the “U.S. Local Governments General Obligation Ratings: Methodology And Assumptions,” published Sept. 12, 2013, criteria methodology. By standardizing the calculations and inputs used in our analysis, the model provides for the consistent application of the U.S. local governments GO criteria. S&P Global Ratings’ U.S. local governments GO criteria explain the methodology and assumptions for assigning issuer credit ratings (ICRs) and issue ratings based on GO pledges by U.S. local governments (excluding special districts).

The model is used to perform credit analysis for new issuance and surveillance of GO ratings for U.S. local governments whenever a GO analysis of U.S. local governments is applied, which includes credit assessments or as an input to other criteria that utilize GO ratings, such as our appropriation-backed debt criteria. The model is also used to generate Institutional Framework (IF) and Metropolitan Statistical Area (MSA) scores, as defined by the criteria, which are inputs to our GO rating analysis.

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12 Apr, 2021

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