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