CEDAR RAPIDS — The city of Cedar Rapids has been assigned bond rating agencies’ second-highest rating because of the city’s “very strong financial profile,” above-average leverage associated with debt and pension obligations, and risks associated with the city-owned hotel and convention center.
“The city of Cedar Rapids maintains a strong financial profile through its financial management practices, and this rating from Moody’s confirms the city’s creditworthiness,” Casey Drew, Cedar Rapids finance director, said in a Friday news release. “The city is also excited this issuance provides funding to support the long-term strategy for the city’s flood control system.”
Moody’s Investors Service has assigned an Aa1 rating to two sets of general obligation bonds.
The city’s $22 million general obligation bonds are being used to fund improvements to streets, sidewalks, bike paths, parks, flood mitigation projects and other capital improvements within the city.
Its $6.6 million taxable general obligation bonds are being used to fund improvementa to city facilities to comply with the Americans With Disabilities Act, as well as pay off debt.
The city also was assigned Aa2 ratings for $13.4 million Sewer Revenue Bonds, which will fund improvements to the sewer system, and $9.7 million Water Revenue Bonds to fund improvements to the city’s water system and refund the outstanding Water Revenue Bonds for interest savings.
“The outlook on the general obligation rating is stable, reflecting Moody’s expectation that the city’s healthy financial profile will be maintained and its long-term leverage will remain stable,” according to a news release from Moody’s.
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