City of Rochester
News Release
(Thursday, July 17, 2014) – Mayor Lovely Warren announced that the City of Rochester received word that Moody’s Investors Service has signed a MIG 1 rating to the City's $65 million Bond Anticipation Notes, 2014 Series II. The MIG 1 rating is Moody’s highest rating for short-term municipal obligations that are considered investment grade. The MIG 1 rating denotes superior credit quality.
According to Moody’s report, the assignment of Moody's highest short-term rating reflects the city's consistently strong market access for short-term debt issuances and the city's long-term credit profile.
“Moody’s positive rating is another affirmation from nationally recognized experts that we are being good stewards of the City’s money, and that we are operating as sound and fiscally conservative managers. Coming on the heels of the A+ credit rating that we received last month from Fitch Ratings, this is excellent news for Rochester. Maintaining a positive credit rating is key to a financially stable future, so we are grateful that Moody’s Investors Service has affirmed our practices by giving us the MIG 1 rating,” said Mayor Warren.
According to Moody’s, the assignment of Moody's highest short-term rating reflects the city's consistently strong market access for short-term debt issuances and the city's long-term credit profile.
An excerpt from Moody’s report is included below:
ROCHESTER (CITY OF) NY
Cities (including Towns, Villages and Townships) New York
Moody's Rating
Issue Rating
Bond Anticipation Notes, 2014 Series II MIG 1
Sale Amount $65,150,000
Expected Sale Date 07/29/14
Rating Description Note: Bond Anticipation
Moody's Outlook - STA
NEW YORK, July 16, 2014 -- Moody's Investors Service has assigned a MIG 1 to the City of Rochester's (NY) $65 million Bond Anticipation Notes, 2014 Series II. Moody's currently maintains a Aa3 rating on the city's $334 million in long-term general obligation, limited tax debt; the outlook is stable. The BANs and all of the city's GO debt is secured by a general obligation pledge as limited by the Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011). Proceeds of the Series II notes will provide financing for general city purposes ($22.9 million), school purposes ($20.0 million) water facilities ($17.9 million), parking ($3.6 million) and
$0.8 million for various other capital projects.
RATINGS RATIONALE
The assignment of Moody's highest short-term rating reflects the city's consistently strong market access for short-term debt issuances and the city's long-term credit profile. The Aa3 rating reflects the city's satisfactory financial position despite ongoing challenges, a large tax base stabilized by a significant institutional presence, and an above average debt burden.
STRENGTHS
- University presence stabilizes the city's tax base
-Strong fiscal management resulting in historically strong reserves.
CHALLENGES
- State aid reductions for both the city and the school district will challenge city's stable financial position
- Amortization of annual pension payment
-30-
News Media: For more information, contact Christine Christopher, City Communications Director at 428-7135