Moody’s Investors Service announced that the City of Waukee general obligation credit rating will again stay at Aa2, to which the City was upgraded in 2017. This rating allows the City to receive more competitive interest rates for repayment of debt. Post-sale, the City will have $113.3 million of general obligation unlimited tax (GOULT) debt outstanding.
“We are encouraged that the City continues to maintain its stable credit rating,” said Waukee Mayor Courtney Clarke. “In consultation with City staff and our financial advisory team, elected officials continue to review and institute economic strategies to ensure that Waukee continues to be a financially sound City providing excellent service value.”
The Series 2022A bond proceeds will finance capital projects throughout the city.
According to the Moody’s report, the Aa2 rating reflects Waukee’s “growing and affluent tax base with economic ties to the Des Moines (Aa2 stable) metro area, and favorable demographic trends. The rating also reflects the city's healthy financial position with strong reserve levels and ample levying flexibility. The city's primary credit challenge is high debt leverage and elevated fixed costs to fund a steady stream of capital improvements driven by the City's continued growth. Pension liabilities are modest.”
The Credit Opinion Report notes that moderation of the debt burden plus continued tax base growth coupled with strengthened resident income levels could lead to a future rating upgrade. Factors listed, which could lead to a downgrade, include deterioration of the tax base and resident income profiles, growth in long-term leverage, and large and sustained decrease in available reserves or liquidity.
To view the complete report from Moody’s Investors Services, visit the Moody's website.
Original source can be found here.
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