Moody’s Investors Service upgrades city water bonds
The City of St. Augustine received some very positive financial news in the form of a notice regarding its bond ratings.
Moody’s Investors Service notified Finance Director Mark Litzinger that it has upgraded to Aa3 from A1, the City of St. Augustine’s Water and Sewer Revenue Bonds. The rating action affects $13.4 million in debt outstanding.
The rating moves the city’s bond financing risk from upper medium grade to high grade thus improving the city’s standing as a good investment for the bond market.
According to the email from Moody’s to Litzinger, “The upgrade to Aa3 reflects strong and improving debt service coverage, satisfactory liquidity, and adequate legal provisions. The rating also reflects the small but growing size of the system and very low debt burden.”
“The city’s residents and businesses should welcome this good news because it shows continuing and growing confidence in the city’s financial stability,” said Litzinger. “This increased confidence in the city was earned through the work by every department throughout city government, because it takes the entire team to achieve this status with Moody’s.”
For more information call the city’s Financial Services Department at 904.825.1030.