City of Huntsville once again receives triple-A credit ratings
Published on February 20, 2023
Great news! Moody’s Investors Service and S&P Global Ratings have once again awarded Huntsville triple-A credit ratings, received by only a minority of government entities in the nation. Ratings provide a common and transparent global language for investors and other market participants, corporations and governments.
Ratings assigned are forward-looking opinions of the relative credit risks of financial obligations issued by public sector entities. Triple-A agencies show the ability and willingness to meet their financial obligations on time and in full. Only the “highest quality, with minimal risk” financial obligations receive a triple-A rating.
The ratings reflect the City’s solid economic position and strong fiscal management. With the City’s financial track record, citizens can feel confident their local government is prudent with tax dollars, using debt wisely and focusing on capital projects that matter most to our community.
“By taking a conservative approach to fiscal management, we’ve been able to foster a thriving economy that will benefit tax-payers for decades to come,” said Mayor Tommy Battle. “Our dedicated Administration and elected City Council members also help support a responsible, balanced budget and continue to yield smart investments that make Huntsville a great place to live, work and play.”
In a recent ratings report, Huntsville was praised for its ongoing economic development efforts, diverse and growing tax base, positive operating performance, strong reserves, liquidity and more.
“Huntsville’s local economy has been exhibiting strong, continuous growth with expansions in major businesses and residential developments citywide,” the report said.
These ratings were required ahead of the $205 million debt issuance set for competitive sale on Feb. 23. This issuance consists of four series to be used toward the following capital assets:
- $75 million for public parks and other recreational activities
- $30 million for economic development land and infrastructure
- $50 million for sewer plant expansion and major equipment
- $50 million for schools, including Central Office and Career Tech academy buildings