Moody's upgrades Tualatin's bond rating
The city of Tualatin is now seen as more creditworthy by Moody's Investors Service, an influential rater of securities and investments.
Moody's announced Friday that it has upgraded Tualatin's general obligation bond rating from Aa2 to Aa1, the highest numerical rating in its second-highest tier, and moved its full faith and credit obligations rating from Aa3 to Aa2.
The Aa tier is second only to the elite Aaa tier in Moody's system of categorizing credit risk. The rating connotes a very low risk and a high likelihood of debt being repaid. The higher an entity such as a local government is rated, the lower interest rates it may have to pay on its financial obligations, because lenders will tend to view them as more likely to repay them.
Tualatin city officials received the news favorably.
City Manager Sherilyn Lombos said in a statement that the rating upgrade affirms the city's excellent financial position.
In the same release, Finance Director Don Hudson said, This upgrade is further proof of the City's solid tax base, as well as the commitment of the Council and City staff to practice good fiscal health policies throughout the year and when putting together our annual budget.
Moody's attributed the upgrade to Tualatin's relative wealth and affluence, as well as its new development and growth, along with the city's low debt.JW_DISQUS_ADD_A_COMMENT