Good news from bond rating agencies Standard & Poor’s and Moody’s, they have affirmed the City’s triple-A bond rating. Standard and Poor’s noted the City’s very strong economy, with access to a broad and diverse metropolitan statistical area, strong management with strong financial policies. Moody’s Investors Service said the triple-A rating reflects the city’s strong financial position marked by healthy reserves and robust fiscal policies. The rating also takes into consideration an affluent and growing tax base and manageable debt burden.
The triple-A rating is the top rating possible and holding this rating from two rating agencies places Franklin in the top ranks of cities across the country. Financial ratings are an indicator of both the organization’s financial well-being and the community’s economic health. Having this top rating allows the City to receive the most favorable interest rates when borrowing money for long-term capital projects or refinancing existing debt to save money. The City of Franklin has held the triple-A rating from both agencies since 2009.
Moody’s and Standard & Poor’s assigned the AAA rating and stable outlook to Franklin’s series 2017 $24.4 million general obligation public improvement bonds. The bond proceeds will finance various capital projects citywide, including:
· The design, construction, repair and improvement of streets, roads, sidewalks, greenways, and trails;
· The improvements to the city’s refuse transfer station.;
· The city’s portion of a countywide public-safety communication system; and
· The acquisition of fire equipment.
“We are very pleased to have our Triple-A bond ratings with both agencies affirmed,” said City Administrator Eric Stuckey. “This rating ensures that the City receives the lowest interest rates for our bonds and is a strong vote of confidence in the city of Franklin’s financial stability, overall management, and the strength of our local economy.”
Pricing for the bonds will take place June 15 with a closing of the sale taking place by the end of the month.