City of Toledo Bond Ratings Received from Moody’s and Standard & Poor’s
The City of Toledo has received confirmation from Moody’s that the rating agency has reaffirmed the City’s bond rating as “A2, outlook stable” regarding its 2015 general obligation bond debt. The positive rating ensures that the City’s borrowing costs will also remain stable.
“These ratings are provided annually like a fiscal health checkup. The City of Toledo is in good financial health,” said Mayor Hicks-Hudson, “based on increased tax revenues, less transfers from the capital improvement budget to the general fund, and deposits to build our reserves.”
Moody’s states “The A2 rating reflects the city’s narrow, though improving, financial position… the stable outlook reflects our expectation the city will maintain stable operations, reduce its reliance on transfers from the capital improvement fund, and rebuild reserves over time.”
The City’s Standard & Poor’s rating continues to be A- stable. Among summary comments S&P noted that despite Toledo’s weak economy, the city has “strong management in place with good financial policies and practices,” and strong liquidity as well as access to external liquidity which the agency considers “exceptional.”
Finance Director George Sarantou said the bond agencies applauded the City’s efforts to wean off the capital improvement budget to support the general fund, as well as its work toward increasing its reserves. Sarantou pointed to ProMedica’s commitment to moving its headquarters to downtown Toledo and the domino effect this investment is having on other business interests who will also help to position the City to receive future tax revenues.
Posted by Stacy Weber on Thursday, September 17, 2015.