If you could make one move that would positively affect your entity’s credit rating, would you consider it?

three+one +10% Credit RatingToday, various credit rating agencies are looking at the overall liquidity health of public entities, especially after the impact of the COVID-19 pandemic.

What level of cash does your entity have on hand? What’s its ability to pay bills? How does carrying debt look on the balance sheet, both quantitatively and qualitatively?

The fact is that rating agencies are currently weighing the impact of liquidity on an entity’s credit rating by at least 10%. That means having an up-to-date liquidity analysis on hand could favorably impact your credit outlook and your actual rating.

Remember, liquidity is more than just having cash on hand. It is the level of information that can impact what you can borrow and the rate you have to pay.

Consider it as a 10% difference that could be worth millions to your entity—and your taxpayers.