Moody's Investors Service has awarded the City of Iowa City the highest credit rating possible, an Aaa bond rating, for its upcoming 2017 general obligation bond issue. The City has maintained an Aaa rating since November 1973 on its general obligation bonded debt. The top tier Aaa rating ranks Iowa City among the most financially stable cities in the state of Iowa and the nation.
The Moody’s rating is used by banking authorities and investors to evaluate the potential risk of loans, bonds, and other financial transactions with municipalities and other governmental entities. A top rating by Moody’s, a global market rating agency, represents the least amount of risk to investors. For Iowa City, it also represents financial savings for the City and taxpayers due to lower interest rates on loans for municipal projects.
Moody’s Investors Service has also awarded the City of Iowa City an Aa2 rating, the third highest rating possible, for its upcoming 2017 water and sewer revenue bond issues. Moody’s reported that the City’s water and sewer utilities have a stable service area, unlimited rate setting authority, strong system liquidity, and a modest debt profile. The Aa2 rating will assist the City in the issuance of refunding bonds to retire higher rate debt and achieve a net savings for the City.
For more information City of Iowa City Finance Director Dennis Bockenstedt at 319-356-5053 or firstname.lastname@example.org.