City Bond Ratings Remain Strong
Rating Agencies Recognize Stable Outlook of City Bonds
January 22, 2018
The City of Tallahassee recently received bond ratings on its upcoming sale of Energy System Revenue Bonds, Series 2018, and its parity debt obligations. Strong bond ratings help minimize the cost the City pays to borrow funds and demonstrates a confidence in the City’s financial management.
“In Tallahassee, fiscal and environmental stewardship go hand in hand,” Mayor Andrew Gillum said. “Our exceptional bond ratings further demonstrate the City’s strong financial standing, benefitting the Tallahassee community now and in the future.”
Standard & Poor’s reviewed the Energy System Revenue Bonds, Series 2018, and the parity debt obligations and reaffirmed its AA rating with a stable outlook. The strong rating recognizes “good financial metrics, a deep service area economy and what we view as good management practices,” according to Standard & Poor's credit analyst Scott Sagen.
Additionally, Moody’s Investors Services gave an Aa3 rating with stable outlook to the Energy System Revenue Bonds, Series 2018, and affirmed the Aa3 with a stable outlook on the outstanding parity debt. The Aa3 rating reflects the City’s service area with stable employers, competitive rates, a sound cost recovery system and a consistently strong cash position.
“Strong ratings are the result of sound decisions by the City Commission and effective operations by City staff,” said Jim Cooke, City Treasurer-Clerk. “In particular, these ratings reflect financially responsible management practices as noted by both Moody’s and Standard & Poor’s.”
For more information, please contact the City Treasurer-Clerk’s Office at 891-8130.
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