What does this mean?  

Think of it like your credit score. A high score tells potential lenders, your customers or constituents, or potential partner agencies that you manage your money well, are reliable in making payments, and are a low-risk potential borrower. Also, the higher your credit score, the more likely and willing a creditor would be to lend funds and the lower interest rate you would pay for any debts issued like mortgages, bonds, or property purchases. S&P’s credit rating for Morgan Hill is forward looking, and is based on both historical and current data, including any anticipated business cycle fluctuations, current low debt amounts with no plans to incur additional debt, current savings or in the City’s case, reserves, and strong management policies and practices, including robust long-term planning and reporting practices, and adequate institutional framework.  

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