Mayor’s Office of Communications
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FOR IMMEDIATE RELEASE: 07/02/12
Moody’s Upgrades City of Atlanta’s Rating
Bond credit rating service revises city’s outlook from ‘negative’ to ‘stable’ on its outstanding general bond obligation debt; also affirms the city’s Aa2 rating on general bond obligation debt and its A1 rating on revenue bonds
ATLANTA – Moody's Investors Service on Friday affirmed the City of Atlanta’s Aa2 rating and revised its outlook to “stable” from “negative” on its $211.4 million in outstanding general obligation bonds and $184.5 million in contractual obligations. Concurrently, Moody's affirmed the A1 rating on $81.4 million in revenue bonds issued through Invest Atlanta (formerly the Atlanta Development Authority) and the Atlanta-Fulton County Recreation Authority.
“The Moody’s rating reflects the commitment of my administration to restore the City of Atlanta’s finances and put us on a solid fiscal foundation moving forward,” said Atlanta Mayor Kasim Reed. “Despite the economic challenges of the past several years, we have built the city’s reserves, worked with the Atlanta City Council to pass sound, balanced budgets, and invested wisely in public safety and young people.”
In its report, Moody’s specifically pointed to several initiatives undertaken by the Reed Administration that led to the Aa2 general obligation rating, including the city's recently improved reserve position. Moody’s said: “The diversity and scope of the city's mature economic base, although impacted by the current recession, remains at the center of a nationally-important trade and transportation hub, and further incorporates the city's manageable debt burden with limited future borrowing plans.”
Moody’s also said the revision of the outlook to “stable” from “negative” reflects the city's “return to structural balance and resulting, significant improvement of its General Fund balance, which is expected to remain satisfactory given management's conservative budgeting practices and commitment to adhere to reserve targets.”
“The Moody’s opinion reflects the commitment and accomplishments that the City of Atlanta has achieved thanks to the vision and leadership of Mayor Reed,” said Chief Financial Officer Jim Beard. “The finance team will continue to work to address any remaining concerns of the rating agency in hopes of receiving further upgrades in the coming year."
Please click here to access the Moody’s opinion.
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