The City of Covington’s bond credit rating was upgraded by Moody’s Investors Service Wednesday.
The City received the positive news that Moody’s Investors Service has upgraded the City’s bond credit rating to A3 low credit risk with a positive outlook from Baa1.
Moody’s based the City’s rating on various detailed considerations, including the City’s strengthened balance sheet positioning, continued use of annual surplus monies to bolster reserves, and improved fiscal management practices in accordance with the City’s Fiscal Stability Ordinance.
Mayor Joseph U. Meyer stated, “This is good news for the City. The City continues to make progress turning around its financial condition. The bond credit rating upgrade recognizes the progress made to date. The positive outlook anticipates that more progress will be made in the years ahead.”
Moody’s noted specific financial strengths used to determine the City’s bond credit rating, including the large tax base located in the Cincinnati metro area as well as the City’s improved financial position.
Due to these positive financial strengths, Moody’s unveiled an optimistic outlook for future fiscal performance and offered confidence the City would continue to improve its financial operations.
Interim City Manager Loren Wolff stated, “The City is extremely pleased to learn of its upgraded Moody’s bond credit rating and we will continue our efforts to improve our financial position.”
As stated in the Moody’s report, the positive outlook reflects Moody’s expectation that the City will continue to improve its financial positioning through cash reserve levels, creation of additional policies, operational sustainability and close management of expenditures.
Moody’s believes years of materially improved financial operations could lead to another upgrade in rating, as this typically indicates a higher likelihood of rating change.
This is the second year in a row the City has received positive news regarding its bond credit rating. In June 2016, Moody’s affirmed the City’s Baa1 rating and changed the former negative outlook to positive.
Moody’s Investors Service is a bond credit rating business that provides international financial research on bonds issued by commercial and government entities.
To view the City of Covington’s Moody’s Report, click here.
City of Covington