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Bond Rating Information
Municipal Bonds
The City received the highest bond rating in December 2016 - Aaa. Below you will find some information about what a municipal bond is and what a bond rating means.

Municipalities issue general obligation (GO) bonds to finance infrastructure needs, i.e., it is a debt financing mechanism to provide capital for projects. Another way of explaining it is a community identifies a need and decides to issue a bond to investors to receive cash payments with the promise to repay the bond holder over time. The proceeds, or cash payments, from a bond sale are then used to pay for the designated purpose of those funds.

While there are other methods to issue debt this is the most commonly used method among municipalities. What was completed for the City by Moody’s Investor Services, a bond rating agency, was a process to establish a municipality’s credit risk. In other words, it is an assessment of a city, villages or town’s capacity to meet its financial commitments. Currently, there are three major rating agencies for municipal bonds: Moody's Investor Services, Standard & Poor's and Fitch Ratings.

Moody’s Ratings
  • Aaa: The strongest creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
    Aa: Very strong creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues. 
  • A: Above-average creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.  
  • Baa: Average creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
  • Ba: Below average creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
  • B: Weak creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
  • Caa: Very weak creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
  • Ca: Extremely weak creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
    C: The weakest creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.
  • Bonds in the Aa, A, and Baa are also assigned 1, 2, or 3 based on the strength of the issue within each category. A1 is the strongest group of A securities and A3 is the weakest.

City’s Capital Budget shows the projects the City bonds  and can be viewed here.



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