Two major credit rating agencies have assigned high marks to Winston-Salem’s recent bond issue. Moody’s Investors Service and Standard & Poor’s Financial Services (S&P) gave AA1/AA+ ratings to the $44 million in limited obligation bonds issued by the city on August 6. These ratings are expected to lower interest costs for the city, resulting in savings for taxpayers.
Both agencies based their evaluations on Winston-Salem’s financial management, economic stability, and outlook for the future. In addition to the new bond ratings, Moody’s and S&P reaffirmed their AAA long-term ratings on the city’s outstanding general obligation debt.
Moody’s noted that its rating “reflects the system’s large and diverse service area that benefits from institutional and biotechnology presence, and strong financial position supported by timely rate increases.”
S&P said its assessment “reflects our assessment of Winston-Salem’s demonstrated commitment to repaying appropriation-backed debt as well as our evaluation of the city’s general creditworthiness.”
City Manager Patrick Pate commented, “Overall, this is a very strong validation of our current financial condition. I appreciate the policy directions adopted by City Council, as well as the significant efforts of our financial team in earning these ratings.“
The funds raised through these limited obligation bonds will support capital projects for departments such as Recreation and Parks and Transportation. The bonds are being underwritten by Robert W. Baird & Co.’s local office.
