March 15, 2010
FOR IMMEDIATE RELEASE
Moody’s Reaffirms City’s A1 Bond Rating
DECATUR - Moody’s Investor Service — one of the world’s most respected and widely utilized sources of credit ratings and risk analysis — this week affirmed the City’s A1 bond rating.
A bond rating is similar to a person’s individual credit rating, and the better it is the less the city — and more importantly, taxpayers — pay in interest rates to fund important development projects. The city recently participated in a “surveillance” call with Moody’s which the company has been requiring in recent months in response to the ongoing economic downturn.
Information gleaned from the conversation would indicate that Moody’s was driven to reaffirm the city’s rating based on the proactive approach being taken to address the deficit through reductions in expenses, staffing and services. Moody’s also seemed to be driven to reissue the rating based on the city having diversified its revenue sources, relying on both sales and property taxes to fund government operations.
Cities across the country are concerned about having bond ratings downgraded in response to the current financial crisis.
“The City’s bond rating is an important gauge of the direction in which the city’s financial situation is heading but we need to continue to build our fund balance or risk having our rating downgraded in the future,” said City Manager Ryan McCrady. “As everyone knows, we remain in the midst of tough financial times for the city but we are responding to this crisis by significantly reducing our expenses just like people across the country are having to do to survive.
“The fact that the city has been able to maintain our rating should be seen as affirmation of the difficult financial decisions made by this city council and staff to guide the city during unprecedented economic times.”
For more information contact Billy Tyus at 424-2753.