City of Huntsville maintains its perfect credit ratings, plans new investments
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The City of Huntsville recently received its credit ratings from two of the nation’s top rating agencies this week. Moody’s Investors Service and Standard & Poor’s Rating Services again assigned its highest ratings of Aaa and AAA, respectively, to the City.
The credit rating agencies cited several factors that led to these ratings, including a strong local economy that is experiencing historic investments, such as the $6 billion investment announced in December by Eli Lilly and Company. Also cited by the rating agencies was the FBI training facility, which will invest over $2 billion into the local economy and the U.S. Space Command relocation that further cements Huntsville as a leader in defense and aerospace industries. These ratings also reflect the City’s strong financial management and conservative budgeting practices.
“We are proud to maintain our elite credit ratings, which demonstrate that the City is a careful steward of taxpayer money,” Mayor Tommy Battle said. “That is a responsibility that we never take lightly. We are also grateful for the private investments made in Huntsville that not only provide jobs but contribute to the quality of life for all residents.”
The City of Huntsville issued four series of debt last week. Two of these series will be for new debt, one for the Huntsville City Schools at $75.4 million and one for the City of Huntsville at $77.9 million, and two series will be for refunding, also for Huntsville City Schools ($39.7 million – refinancing these school maturities for a savings of $3.7 million over the remaining life of the warrants) and the City of Huntsville ($21.8 million – refinancing these school maturities for a savings of $2.59 million over the remaining life of the warrants).
The City of Huntsville will use the new series for expansion projects, including the U.S. Veterans Memorial Museum, the Huntsville Ice Sports Center and Big Spring Park as well as renovation of the North Alabama Drug Task Force building hosted by the Huntsville Police Department.