Iowa City keeps Moody’s highest credit rating

IOWA CITY - Once again, Iowa City has maintained the highest credit rating possible from Moody's.

According to a Moody's news release, Iowa kept the Aaa rating it has held since November 1973.

For a city, Moody's ratings are similar to a person's credit score and often are viewed as indicative of financial health. A lower rating means higher borrowing costs for a city.

According to the release, Iowa City was also awarded an Aa2 rating - the third highest possible - for its water and sewer revenue debt.

'Moody's reported that the city's water and sewer utilities have a stable service area, unlimited rate setting authority, strong system liquidity, and a modest debt profile.,” the release said. 'The Aa2 rating will assist the city in the issuance of refunding bonds to retire higher rate debt and achieve a net savings for the city.”