City of Rochester
News Release
(Tuesday, Feb. 24, 2015) – Mayor Lovely Warren announced today that Moody’s Investors Service has assigned the City of Rochester a MIG 1 rating on the City’s $18.3 million Bond Anticipation Notes, 2015 Series I. This is Moody’s highest rating for short term borrowing. Moody’s has also affirmed Rochester’s Aa3 rating on general obligation long term debt and assigned the City a stable outlook. These ratings denote superior credit quality.
“These credits ratings confirm that the City of Rochester remains an excellent investment and is well positioned to grow and thrive in the 21st century economy,” said Mayor Warren. “This report demonstrates that we are being good stewards of the city’s financial resources, which enables us to make sound and strategic investments that lead to safe neighborhoods, more jobs and better schools.”
Moody’s cited the City’s strong fiscal management practices to close budget gaps and maintain healthy reserves, along with the presence of the University of Rochester and the Rochester Institute of Technology in the local economy as strengths in the ratings.
“The stable outlook reflects our belief that the city’s cash and reserve positions will remain satisfactory due to proactive management initiatives despite a number of financial pressures,” Moody’s wrote in a report on Rochester’s financial status. “We expect the city’s tax base to remain stable given ongoing construction projects and diversification of the city’s tax base, despite the struggles at Eastman Kodak.”
As evidence of tax-base diversification, Moody’s noted the University of Rochester’s $100 million College Town project; $200 million in investments in the Center City that will produce 600 housing units within two years; redevelopment of the Midtown Plaza site; the Cody Gate Ventures investment in Eastman Business Park that will produce 250 high-paying, high-technology jobs; and the ongoing development of the Port of Rochester to position Rochester as a Great Lakes destination.
“A highly educated population, well-regarded institutions, and a highly-skilled workforce, position the Rochester MSA to take advantage of the tech advancement spreading across the state,” Moody’s wrote.
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News Media: For more information, contact Press Officer Jessica Alaimo at 428-7135.