City of Columbia Receives Positive Bond Rating

 

Moody’s Investors Service has affirmed the City of Columbia’s underlying general obligation credit rating of Aa1 and, more significantly, removed the negative outlook it assigned to the City’s credit in December of 2009.  Where the 2009 negative outlook reflected Moody’s expectation that near-term challenges could impede the City’s ability to stabilize operations and improve reserves, the return of the City to a stable outlook by Moody’s in 2011 reflects the agency’s independent acknowledgement of Columbia’s conservative budgeting, replenishment of sufficient operating reserves, preservation of a modest debt burden, implementation of sound fiscal policies, and retention of seasoned management and staff by City Council.

 

City Manager Steve Gantt stated, “On average, it normally takes 3 years for an agency to get off of the negative outlook list.  The fact that we were able to achieve this within 1 year speaks volumes of our staff’s dedication.  This bond rating is definitely a positive accomplishment for the City of Columbia.”

 

With a rating just one notch below the State’s Aaa and a return to “stable” in the eyes of Moody’s, the City of Columbia is assured of the lowest cost of funds for future borrowing which results in lower taxes for its residents.   

 

City of Columbia Bond Ratings