Moody’s Investors Services, a leading credit rating agency, has upgraded the rating for Gainesville’s sewer and water revenue bonds.
The rating now stands at Aa2, up from A1.
According to Moody’s, “The upgrade to Aa2 reflects the solid debt service coverage, healthy reserves, low operating ratio and strong management.”
City officials said the improved rating decreases the cost of future borrowing through lower interest rates, and also increases the market value of the outstanding bonds currently held by investors.
The new rating also serves the city’s economic development interests and benefits residents and taxpayers.
“Any time a bond rating is improved, the most immediate impact is that it can lower the city’s capital costs,” said Tim Evans, vice president of economic development at the Greater Hall Chamber of Commerce. “But more than that, it’s like a good housekeeping seal.”