Moody’s Investors Service has assigned a Aa1 rating to the City of Cedar Rapids’ $57.9 million general obligation bonds, Series 2023A, and $6.1 million taxable general obligation bonds, Series 2023B, according to a news release from the city.
The Aa1 rating indicates the bonds are judged to be of high quality and are subject to low credit risk. The outlook on the general obligation rating is stable, reflecting Moody’s expectation that the city’s healthy financial profile will be maintained.
Moody’s rating system assists investors in evaluating credit risk by conducting rigorous analysis of the city’s finances and general management of the operations. The ratings are used as a measure of confidence in the city governance upon each bond issuance. Moody’s also considers the overall economic health of the city, including major employers, local construction, unemployment and other economic indices.
Moody’s recognized the city’s strong local economy that serves as a regional economic hub for eastern Iowa and its strong financial position with healthy reserves and liquidity.
Moody’s also assigned Aa2 rating to the city’s $11 million water revenue bonds, Series 2023C, and maintained the Aa2 rating on the city’s previously issued water revenue debt. This debt is paid from net revenues of the water enterprise. The Aa2 water revenue rating reflects the systems’ solid debt service coverage and strong liquidity supported by its unlimited rate setting authority and incorporates the systems’ large size.
The bond sale associated with these ratings is scheduled for Tuesday, May 9.
To view the full report, visit Moodys.com.
