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Cedar Rapids bond ratings remain at second-highest level

The bonds will be used to fund infrastructure improvements

FILE PHOTO: The logo of credit rating agency Moody's Investor Services is seen outside the office in Paris October 24, 2011. REUTERS/Philippe Wojazer/File Photo
FILE PHOTO: The logo of credit rating agency Moody's Investor Services is seen outside the office in Paris October 24, 2011. REUTERS/Philippe Wojazer/File Photo

CEDAR RAPIDS — The city of Cedar Rapids has maintained a high bond rating, reflecting a “strong financial profile,” the city announced Tuesday.

Moody’s Investors Service has kept a Aa1 rating for two sets of bonds Cedar Rapids will use to pay down debt and make improvements to city infrastructure.

The Aa1 rating is the second highest Moody’s awards behind a Aaa rating.

“This rating reflects the financial policies and operational efficiencies we have put in place to carefully manage City resources,” Cedar Rapids Director of Finance Casey Drew said in a news release.

The Aa1 rating applies to $30 million in general obligation bonds the city will use to fund street, sidewalk, bike path and park improvements.

It also applied to an $8.8 million bond to pay for improvements at the U.S. Cellular Center and Veterans Memorial Building, as well as the construction of a parking ramp.

Moody’s also gave an Aa2 rating, the third-highest possible, to two sets of revenue bonds Cedar Rapids will use to improve its sewer and water systems.

The Cedar Rapids City Council approved issuing the bonds earlier this year.

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The ratings firm also said the outlook for the city’s general obligation bonds is “stable.”

“The stable outlook ... reflects our expectation that the city’s healthy financial profile will be maintained and its long-term leverage, while above average, will remain stable,” Moody’s said in its rating report.

l Comments: (319) 398-8366; matthew.patane@thegazette.com

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