City Bond Ratings Remain Strong
Improvement Made to Blueprint 2000 Bond Outlook
March 19, 2014
The City of Tallahassee recently received updated ratings on two of its bond programs. Strong bond ratings impact the cost the City pays to borrow funds and demonstrates a confidence in the City’s financing.
Standard & Poor’s reviewed the Consolidated Utility System and reaffirmed its AA+ rating with a stable outlook. The City’s water, sewer and stormwater system comprise the Consolidated Utility System. The strong rating recognizes several strengths of the system. Strengths include the City’s stable service area, strong financial performance, ample capacity to meet current and projected service-area growth and limited plans for new debt.
“We are very pleased to see the strong utility system rating,” said Jim Cooke, City Treasurer-Clerk. “We already know that our operations, including advanced wastewater treatment, are well-managed, but this also provides confirmation by a third party of the strength of our financial position.”
Additionally, Moody’s Investors Services conducted a ratings review of the Leon County-City of Tallahassee Blueprint 2000 Intergovernmental Agency's sales tax bonds. It reaffirmed its rating of Aa2 and removed the negative outlook it had placed on the credit a few years ago. This outlook change reflects improved revenue and coverage trends for the broad pledged revenues, further supported by a stabilizing large taxable base and satisfactory bondholder protections.
“The action by Moody’s on its Blueprint 2000 rating confirms what we have seen locally – an improving economy helps the community,” Cooke said. “As we see the excitement generated by Cascades Park and other Blueprint projects, it is great to see that Moody’s saw an improved outlook for Blueprint’s finances.”
For more information, please contact the City Treasurer-Clerk’s Office at 891-8130.
Jim Cooke, City Treasurer-Clerk, 891-8146; or Michelle Bono, Assistant to the City Manager, 891-8200