Huntsville Receives Top Credit Rating
Once again, the city of Huntsville, Alabama has achieved a Triple-A credit rating from both Moody’s and S&P Global Ratings. That's right, Triple-A!
Now, you may be thinking, what's the big deal about a credit rating? Well, a Triple-A credit rating means that Huntsville is considered to be of the “highest quality, with minimal risk” and reflects the City’s ability and willingness to meet their financial obligations. This is a significant accomplishment, as the average for municipalities is AA, and compared to the corporate world, it's BA.
What's even better is that this Triple-A rating means that the city of Huntsville has the lowest interest rate possible. Out of all the cities in Alabama, only three have achieved this credit rating, and Huntsville is one of them. Mayor Tommy Battle had this to say about the achievement: “By taking a conservative approach to fiscal management, we’ve been able to foster a thriving economy that will benefit tax-payers for decades to come.” The Triple-A credit rating was required ahead of a $205 million debt issuance, which is a big deal for the city. This rating covers public parks and recs, economic development land and infrastructure, sewer plant, and schools.
So, what are the benefits of this rating? Well, it gives the city more bang for their buck when making investments. It also helps keep taxes lower because higher bond rates mean the city has to cut back on services or raise taxes. Investors look at this rating along with other factors when considering bringing new developments to the area. More investment in developments raises property values, which is great for homeowners. Overall, achieving a Triple-A credit rating is a significant achievement for the city of Huntsville. It's a testament to the conservative fiscal management approach taken by the city, and it'll have a positive impact on the city's economy for years to come.Matt Curtis on