Coweta County receives Upgrade from Moody’s Investor Services
From Special Reports
On April 13, 2022, Moody’s Investor Services upgraded Coweta County from an Aa2 to Aa1 unlimited tax rating and from an Aa3 to Aa2 outstanding lease revenue rating. In addition, Moody’s assigned Coweta County an Aa1 rating to the County’s $35 million Revenue Bonds, Series 2022 issued by the County’s Public Facilities Authority.
“We are beyond thrilled that Moody’s Investor Services has upgraded Coweta County’s ratings,” says Board of Commissioners Chairman Bob Blackburn. “This increased rating is a true testament to the County’s sound financial practices while helping to lower the cost of debt to citizens.”
According to Moody’s Investor Services, being upgraded to an Aa1 “reflects a sustained trend of positive financial operations resulting in healthy fund balance and liquidity levels, supported by conservative budgeting practices and adherences to established fiscal policies, in addition to the county’s sizeable and growing tax base that benefits from its proximity to Atlanta. The rating also incorporates the county’s low leverage and fixed costs with limited plans for additional debt issuance and favorable socioeconomic profile.”
In addition, “the lease revenue bond upgrade to Aa2 is one notch below the county’s general obligation unlimited tax (GOULT) rating and reflects the county’s pledge to appropriate, under a lease agreement, an amount sufficient to pay principal and interest on bonds as well as the more essential nature of the projects financed.”
Coweta County is now one of 10 counties in Georgia with an Aa1 rating and one of 15 counties in the state with an Aa1 or above rating. The funding from these bonds will help build a new 160-bed housing unit at the Coweta County Jail, along with major upgrades to the kitchen, infirmary, laundry, and courtroom areas necessary to support the facility and related jail services.
“Due to the County’s financial strength and ratings upgrade, around 24 large institutional and numerous small investors showed interest in the bonds,” shares Coweta County Finance Director Hans Wilson. “That strength was able to drive the interest rates down slightly more in an environment of quickly increasing rates.”
For more information on Moody’s ratings, visit https://bit.ly/3y7U6o2 or https://bit.ly/3MFJQHF.