Article: Moody's Upgrades Miami's General Obligation Bonds
City of Miami
Upgrade attributed to the City's Financial Growth and Pro-active Measures
Miami, FL. - In an opinion released today, Moody's Investors Service announced that it has upgraded the rating of the City of Miami's General Obligation Tax Bonds to an A2 from an A3. This bump up will allow the city to issue bonds at a lower interest rate, which represents tax dollar savings on future bond issues. This move also adds to the upward slope in the city's bond ratings in the past four years, with two previous upgrades from Moody's and another from Standard & Poor's.
"This is great news and a testament to the continued economic growth and improved fiscal management in our city in recent years," said City Manager Pete Hernandez. "We are pleased with the upgrade from Moody's and will continue to work towards improving our financial standing so that we can enhance services to city residents."
Among the reasons cited by Moody's for the rating upgrade are "the city's sustained good financial condition exhibited by a favorable General Fund reserve position" and "a modest debt profile." The opinion also describes the Miami 21 plan as a proactive measure that will provide long-term benefits for the city.
Standards and Poor's (S&P) has maintained the city's Non-Ad Valorem Bond Rating at an "A" with a "Stable" Outlook. The agency also gave the city a Management Assessment of "Strong" which is the highest assessment available in this category. S&P's last review of the city's General Obligation Bond yielded an "A+" rating.