City Bond Rating Upgrade
In a report dated July 7, 2014, Moody’s Investors Service announced the upgrade of the revenue bond rating for the City of Gainesville from A1 to Aa2, a rare two-step upgrade. This places the City of Gainesville at a very high rating on Moody’s scale where an Aaa is the highest rating. Only two water and sewer systems in the State of Georgia are above the Aa2 rating now awarded to the City of Gainesville.
Moody’s report stated, “The upgrade to Aa2 reflects the solid debt service coverage, healthy reserves, low operating ratio, and strong management.”
This upgrade in the City’s rating decreases the cost of future borrowing through lower interest rates and issue costs. It also increases the market value of the outstanding bonds currently held by investors. More importantly, the upgrade has a positive impact for the City in terms of economic development. Businesses interested in the City of Gainesville will view the bond rating as an indication of the community’s economy and of the City’s prudent governance.