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City Earns Aaa Credit Rating

Post Date:07/03/2018 2:30 PM

WESTERVILLE EARNS NINTH Aaa CREDIT RATING 

City Maintains Best Credit Ratings from Moody’s Investor Services, S&P Global

(Westerville, Ohio) – The City of Westerville has earned the Aaa bond rating from Moody’s Investors Services and S&P Global Ratings for the ninth consecutive year. Aaa represents the highest achievable bond rating, reserved for organizations that meet the highest quality, lowest credit risk criteria for investors.  

Bonds with Aaa ratings are considered the best quality by all standards and comprise what are generally known as high investment-grade bonds. The Aaa rating designation provides access to the best interest rates available for debt issues.

The City sought the rating assignment for $20 million General Obligation Capital Facilities Bonds to be issued in conjunction with the Westerville Community Center Expansion Project. Both rating agencies affirmed their Aaa rating on existing General Obligation debt.  

Westerville City Manager David Collinsworth says the City’s nine-year Aaa rating is rare in municipal settings and continues a tradition of responsible fiscal management and public resource management.

“Westerville would be at a disadvantage if we wanted to continue our momentum with facility projects and updates without the benefit of these ratings and the favorable interest rates we’ll pay on our debt,” said Collinsworth. “Because the City is able to issue debt for major capital improvement projects at lower interest rates, taxpayer dollars are optimized on public projects like road work, park development and utility infrastructure.”

Both reports highlight Westerville’s strong financial management practices as part of the basis for the Aaa rating. The Moody’s report also notes the City’s substantial tax base and healthy reserves.  

“Westerville has a strong sense of stewardship when it comes to managing fiscal resources,” said Lee Ann Shortland, City of Westerville Director of Finance. “There are a couple major factors that affect the rate of interest the City pays when issuing bonds for capital projects, and the credit rating assigned by the rating agencies is chief among them. By continuing to secure the Aaa rating, we’re delivering on our promises to residents and income taxpayers to prudently and conservatively manage the City’s finances. The City’s debt is issued with a fixed rate over a 20-year term, thereby guaranteeing the favorable rate is in place for the full term of the financing.”

The full reports from both agencies are available on the City of Westerville website at www.westerville.org/finance
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