Moody’s and S&P Issue City Strong Credit Ratings
(Fayetteville, N.C.) — Moody’s Investors Service has issued the City of Fayetteville a strong credit rating for its $16 million General Obligation Parks and Recreation Bonds and $2.3 million General Obligation Refunding Bonds. Additionally, S&P Global Ratings issued strong credit ratings to the City for its General Obligation Parks and Recreation and Refunding bonds, Limited Obligation Bonds and on Fayetteville’s previously issued appropriation-backed debt.
Just as when a citizen has a strong credit report and is able to borrow money at more affordable rates, a similar credit rating system is extended to municipalities. These outstanding credit rating scores mean the City pays less in fees in the long run because of its outstanding credit, saving money for the City and ultimately taxpayers.
Moody’s assigned the City an Aa1 rating, which is its second best credit rating. S&P Global Ratings issued an AA+ rating to the City for its General Obligation Parks and Recreation and Refunding bonds, an AA rating for the City’s Limited Obligation Bonds and an AA rating on Fayetteville’s previously issued appropriation-backed debt. Each of the S&P credit ratings are the second best that the agency will extend, with the AA+ designation representing a slightly higher score.
“The strong credit ratings show the City of Fayetteville has a solid financial foundation,” Mayor Mitch Colvin said. “This reaffirms we are perfectly positioned for investment and growth.”
“It is one of the City Council's top priorities to be good stewards of taxpayer dollars,” City Manager Doug Hewett said. “High bond ratings allow the City to obtain lower interest rates on the City’s debt. With the strong guidance and discipline shown by the City staff, our stewardship is evident in the ratings given by these two agencies.”
“These ratings represent our strong credit and how well we manage debt,” Chief Financial Officer Jay Toland said. “The City of Fayetteville pays creditors on-time and in-full, which gives the organization a bright financial future.”
For more information about the City, log onto www.fayettevillenc.gov.