Moody's Affirms City of Springfield's Aa1 Bond Rating

By KOLR10 News

Published 07/16 2014 01:50PM

Updated 07/16 2014 01:51PM

SPRINGFIELD, Mo. – The City of Springfield’s bond rating of Aa1 has been affirmed by Moody’s Investors Service, a bond rating agency that ranks the creditworthiness of borrowers.

The City asked for a rating in conjunction with upcoming general obligation bond issuance, according to a news statement.

Moody’s report cited the City’s effort toward responsible financial management.

"The City's financial position is expected to remain healthy over the near-term given its current satisfactory reserve levels which provide adequate cushion again fluctuating sales tax revenues and prudent fiscal management,” says the report.

The report also recognized the City's efforts to increase the reserve balance, often referred to as the "rainy day fund,” and described the levels as satisfactory.

According to the news statement, previous reports described the City’s reserve levels as narrow, “especially as the city primarily relies on sales tax as its main source of operating revenue."

Finally, the report described the renewal of the Police-Fire Pension Sales Tax and pension burden as “average, but manageable.”

Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Top Videos