July 6, 2020 -- Moody’s Investors Service has assigned a Aaa rating to the City of Highland Park’s General Obligation Refunding Bonds, Series 2020, and reaffirmed a Aaa rating on the City’s outstanding general obligation debt with a stable outlook. The City of Highland Park’s Aaa credit rating is the highest credit rating that can be earned by an organization, and is a strong indicator of sound financial management. The City has consistently maintained a Aaa bond rating for over 20 years.
The Aaa stable rating ensures that the City is eligible for the lowest possible interest rates on its debt. This will reduce the overall cost of projects and afford the City the flexibility to allocate resources to additional capital projects or service enhancements.
“The City’s Aaa rating recognizes the excellent fiscal policies set forth by the Mayor and City Council, and the work of City staff to adhere to the highest standards of financial management, particularly in light of the unexpected but significant budgetary challenges posed by COVID-19,” said City Manager Ghida Neukirch. In its report, Moody’s acknowledged the uncertain implications of COVID-19 on the City’s economically sensitive revenues, and identified the City’s adjustments to current operations as a proactive approach to mitigate the economic impact of the pandemic.
“We appreciate Moody’s recognition of our City’s continued financial strength. Financial responsibility is a major priority to this Council and we are proud that our commitment is supported by a Aaa rating with stable outlook,” said Mayor Nancy Rotering.
Rating agencies assign credit ratings for an issuer, such as a local government or corporation, to assist investors in selecting secure investments for their portfolios. Credit ratings represent the future forecast of an organization’s financial stability and like a personal credit score, also determine the rate or cost at which an organization may borrow funds.
The City issues general obligation debt to fund capital improvements such as City streets, water and sewer service, and other major capital projects. For more information on the City’s bond issuances, please contact Finance Director Julie Logan at 847.926.1020 or firstname.lastname@example.org.