City of Plymouth issued the following announcement on Oct. 31.
The City of Plymouth’s top bond ratings have been reaffirmed by two bond credit rating agencies. Standard & Poor’s awarded Plymouth an AAA rating, while Moody’s Investors Service also gave Plymouth its best possible rating of Aaa.
Plymouth is one of only 10 Minnesota cities to hold top ratings from both agencies. Plymouth has maintained top ratings from both agencies since 2010.
“This is an outside endorsement that we meet the high standards necessary to achieve top credit ratings,” Plymouth City Manager Dave Callister said. “These ratings ensure that the city has access to lower interest rates when we issue debt.”
The bond ratings were evaluated as the city prepared to issue $41.8 million in general obligation bonds to fund the renovation and expansion of the Plymouth Creek Center. The ratings will be used by investors who purchase bonds to finance the project.
“Top bond ratings help the city achieve the best possible value for residents because they reduce the amount of interest paid, which directly affects the amount of property taxes required to repay the debt,” Callister said.
In awarding the ratings, both rating agencies pointed to the City of Plymouth’s strong financial position, low debt rate and conservative financial practices, as well as the overall economic strength of the community. The agencies examine past and current financial status, planning and policies, as well as future growth and capital improvement plans to determine ratings. They also consider the community as a whole, including diversity of development, average per capita income, housing values and employment.
The Standard & Poor’s credit opinion said, “We view the city's management as very strong, with strong financial policies and practices under our financial management assessment methodology, indicating our view that financial practices are strong, well embedded, and likely sustainable.”
Moody’s report said, “Plymouth, MN has exceptional credit quality and will continue to benefit from its location in the Twin Cities metro area.” The report added, “Reserves are very strong and will remain healthy because of the city’s strong budget management and likely surplus in fiscal 2020. The coronavirus pandemic has not caused any material credit risks for the city.”
Original source can be found here.
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