Top rating for Minneapolis from all three credit rating agencies
Moody’s Investors Service has announced that it has assigned its "Aaa" rating to the general obligation bonds of the City of Minneapolis. This is the highest rating available from Moody’s, meaning Minneapolis now has top ratings from all three rating agencies, which include Moody’s, Standard & Poor’s Corporation, and Fitch Ratings Service.
Prior to this announcement, Moody’s rated Minneapolis’ general obligation bonds at its second-highest rating, "Aa1." A "Aaa" rating is important because it allows Minneapolis to borrow money at lower interest rates. The ratings are also used by investors who buy the City's bonds as a measure of how likely the City is to repay them on time.
The change in Moody’s credit rating for Minneapolis is part of a widespread "recalibration" of ratings by Moody’s to provide comparability of Moody’s ratings for state and local governments to all other categories of ratings, including corporations, nonprofits, and asset backed securities.
Previously, the ratings assigned by Moody’s to state and local governments were intended to compare the credit quality relative to other state and local governments only.
In its December 2009 outlook for the City of Minneapolis, Moody’s cited the City's "well-managed financial operations, including comprehensive multi-year planning and institutionalized reporting mechanisms."
Moody’s pointed out that "during the past decade, Minneapolis’ strong financial controls and multi-year financial planning practices have enabled the city to maintain and rebuild financial reserves despite significant budgetary challenges."
Published Apr 19, 2010