Home > News List > Cedar Rapids Receives Aa1 Bond Rating on General Obligation Debt and Aa2 Bond Rating on Revenue Debt

Cedar Rapids Receives Aa1 Bond Rating on General Obligation Debt and Aa2 Bond Rating on Revenue Debt

Cedar Rapids Receives Aa1 Bond Rating on General Obligation Debt and Aa2 Bond Rating on Revenue Debt

The City of Cedar Rapids is pleased to announce that Moody’s Investors Service has assigned a Aa1 (stable) rating to the City’s $30 million General Obligation Bonds, Series 2018A and $8.8 million Taxable General Obligation Bonds, Series 2018B. Concurrently, Moody’s has affirmed the Aa1 rating on the City’s outstanding general obligation unlimited tax (GOULT) debt.

Moody’s conducts a rigorous analysis of the finances and general management of the operations for cities across the United States. These ratings are used as a measure of confidence in the city governance upon each issuance of bonds. In addition to finances and general management, Moody’s takes into account the overall economic health of the city, including major employers, local residential, commercial and industrial construction, unemployment and other economic indices. According to Moody’s, Issuers or issues rated Aa demonstrate very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues.

The Aa1 rating reflects the city’s large and growing tax base, its role as an employment hub for eastern Iowa, very strong financial profile, above average debt and pension burdens, and enterprise risks associated with the city-owned hotel and convention center. The stable outlook reflects Moody’s expectation that the city’s healthy financial profile will be maintained and its long-term leverage, while above average, will remain stable.

“This rating reflects the financial policies and operational efficiencies we have put in place to carefully manage City resources,” said Casey Drew, Director of Finance for the City of Cedar Rapids.

Moody’s also assigned the City Aa2 ratings to Cedar Rapids’ $19.5 million Sewer Revenue Bonds, Series 2018C and $15.8 million Water Revenue Bonds, Series 2018D. Concurrently, Moody’s has maintained the Aa2 rating on the city’s outstanding senior lien sewer revenue debt. Moody’s has also maintained the Aa2 rating on the city’s outstanding senior lien water revenue debt. Repayment of these bonds is secured by the city's sewer utility and water utility systems.

The Aa2 rating reflects the utilities’ growing, though concentrated customer base, healthy liquidity, satisfactory debt service coverage, an unlimited rate setting authority and moderate debt burden.

To view the full report, visit www.moodys.com/researchandratings.

© 2018  Cedar Rapids, Iowa, 101 First Street SE

Powered By Revize Login