City Retains Aaa Bond Rating
WESTERVILLE RETAINS Aaa CREDIT RATING
City Maintains Best-Achievable Municipal Credit Rating from Moody’s Investor Services
(Westerville, Ohio) – The City of Westerville has earned the Aaa bond rating from Moody’s Investor Services for the 10th 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 rating was assigned as part of a regularly scheduled review by Moody’s. This process is part of a control system of continual surveillance providing investors with assurance that when a credit rating is affirmed, the rating agency has not detected any increased investment risk.
Westerville City Manager David Collinsworth says a sustained 10-year Aaa rating is rare in municipal government and endorses the City’s commitment to responsible financial stewardship.
“We are in the company of only eight other cities in the state of Ohio to achieve and maintain this rating by two or more rating agencies,” said Collinsworth. “There are only 21 in Ohio who have at least one Aaa rating, so the confidence this offers to our residents, business partners and investors is tangible. We’re proud to be in this class, and the City will continue our traditions in responsible spending and saving.”
The Moody’s report highlights Westerville’s strong financial management practices as part of the basis for the Aaa rating. The City’s substantial tax base and healthy reserves also protect the high-bar rating.
“Managing and monitoring our financial performance has a direct impact on the amount we pay when we issue debt, like bonds for a major capital project.” said Lee Ann Shortland, City of Westerville Director of Finance. “To secure funding at the lowest-possible interest rate is delivering on our promises to residents and income taxpayers.”
The rating will be re-evaluated again in the fall as the City prepares to issue $15 million in bonds for the construction of the Police/Court facility.