Moody’s Investors Service has assigned a Aa1 rating to the City of Murfreesboro’s $65 million General Obligation Bonds, Series 2021. In addition, Standard and Poor’s (S&P Global) has assigned an AA rating for this issue. These ratings indicate the City’s debt is of high quality and subject to very low credit risk with a very strong capacity to meet its debt obligations. For detailed rating action reports, visit https://www.murfreesborotn.gov/2221/22130/City-Bond-Ratings.
In rating the City of Murfreesboro, Moody’s Investors Service stated:
“The Aa1 rating reflects the City’s large and growing tax base located within the Nashville metro area. The rating also incorporates the City’s strong financial position marked by healthy reserve and cash levels and above-average but affordable debt position.”
Both agencies note credit strengths that include the following:
- Favorably located within Nashville metro area.
- Sales and property tax collection performance.
- Strong reserve and liquidity levels.
S&P also noted the City’s “proactive management team is supported by good financial policies and practices” and the expectation that the “City’s population will continue to increase, resulting in rapid economic and tax base growth.”
These ratings allow the City to borrow funds at a low interest rate, which helps to keep the City’s annual debt expense as low as possible. Financing with bonds provides the money needed for the City to undertake large capital projects such as roadways, bridges, and major building maintenance.
“Maintaining the Aa1 rating is reflective of Murfreesboro’s careful financial management, which has created a solid position for the City in the bond market,” said City Manager Craig Tindall. “The City Council’s adopted financial policies and budgetary decision-making continue to place Murfreesboro in a favorable financing position, allowing the City to make critical investment in infrastructure and other capital projects beneficial to the community.”
For more information, contact Christopher Coviello at Moody’s Investment Services at (212) 553-0575 or Bobby Otter at S&P Global at 312-233-7071. You can also visit www.moodys.com or www.standardandpoors.com/ratingsdirect.
For City News online, visit www.Murfreesborotn.gov.