Huntsville maintains perfect financial scores from credit rating agencies

HUNTSVILLE – Two of the nation’s top credit rating agencies have assigned their highest scores to the City of Huntsville. It marks the 16^th consecutive year the city has received the highest rating under Mayor Tommy Battle.

Moody’s Investors Service assigned Huntsville a credit rating of “Aaa” while Standard & Poor’s Rating Services awarded a rating of “AAA.” The ratings are the highest a city can achieve and less than 1% of the more than 22,000 cities and counties across the country receive the top rating.

“These ratings are outstanding news for the city and Huntsville residents,” Battle said. “It confirms that the city is a good steward of the public’s money and underscores the city’s economic strength.

“It’s also a reflection of the hard work by our Finance Department, led by Director Penny Smith, and all of our department heads to ensure we are making wise financial decisions.”

The credit ratings come in advance of the city’s plans to issue debt in early December and early February. The Dec. 5 issuance is valued at about $92.8 million. About $77.4 million will go toward public Parks and Recreation facilities and $15.4 million will pay off Taxable Limited Obligation Revenue Warrants issued for Redstone Gateway development infrastructure.

The February issuance is valued at about $200 million to $225 million. This will be used for school construction and renovation, refunding for interest savings, Von Braun Center renovations and final construction for City Hall.  The formal offering statement will be finalized in January.

Huntsville’s top credit score allows the City to take advantage of the lowest possible interest rates, which result in noteworthy savings. On the upcoming sales, it’s estimated that Huntsville will save more than $1.9 million in interest versus an AA rating and more than $4.8 million in interest over an A rating.

“These credit ratings, while affirming the city’s sound financial strategies, also result in significant savings,” Smith said. “While the perfect credit ratings continue to boost the city’s financial outlook, there are tangible benefits as well.”