Business

Moody's grants Cedar Rapids Aa1 rating

The city of Cedar Rapids says the COVID-19 pandemic did not affect the ratings it received from Moody's.
The city of Cedar Rapids says the COVID-19 pandemic did not affect the ratings it received from Moody’s.

Moody’s Investors Service has assigned Cedar Rapids an Aa1 rating — its second highest score, coming after Aaa — for the city’s $84 million general obligation bonds, Series 2020A; its $28 million taxable general obligation bonds, Series 2020B; and its $27 million taxable general obligation bonds, Series 2020E.

The Aa1 rating signals the bonds are subject to low credit risk.

Moody’s also assigned an Aaa rating to the city’s outstanding general obligation unlimited tax debt,

The services gave an Aa2 ratings — which is just below Aa1 — to the city’s $6 million sewer revenue bonds, Series 2020C, and its $9 million water revenue bonds, Series 2020D.

In assigning the ratings, the city said in a news release Friday, “Moody’s takes into account the overall economic health of the city, including major employers, local residential, commercial and industrial construction, unemployment and other economic indexes. According to Moody’s, issuers or issues rated Aa1 demonstrate very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues.”

The city said the pandemic was “not a key driver” for the final ratings, as Cedar Rapids “is not susceptible to immediate material credit risk related to coronavirus.”

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