Madison Maintains Superior Bond Rating
September 12, 2013
Moody's Investor Service has continued Madison's Aaa bond rating with a stable outlook. The rating is for the $61.6 million in tax-exempt and taxable general obligation notes that will be issued by the City next week. This is the highest possible rating an issuer can receive. It affirms the city's sound financial and budget management, conservative debt repayment structure, stable economy relative to the state and nation, and increasing general fund reserves.
Moody's cited a stable and diverse economy among the city's strengths as well as a multi-year trend of healthy General Fund reserve levels. They noted however that challenges include strict levy limits that reduce the city's revenue raising flexibility for operations. The service also noted that sound financial operations benefit from strong budgetary control and stable reserve levels. They report that the city's sound financial profile is expected to continue due to three consecutive operating surpluses and the presence of healthy reserves.
The rating confirms market confidence in the city's economic condition and the Mayor and Council's fiscal management. Moody's identified two conditions that could change the rating down in the future - weakening of the city's tax base and demographic profile as well as marked deterioration in fund balance.
"It is very reaffirming to receive the Aaa Bond Rating again," said Mayor Paul Soglin. "My office, city staff and Common Council members all work very hard to maintain this high rating and we are committed to maintaining it despite the restraints we are facing."
To view the complete report:
- Dave Schmiedicke, 608-267-8710