Special obligation and general obligation bond ratings affirmed
FOR IMMEDIATE RELEASE: March 3, 2014
Moody’s Investors Service and Standard and Poor’s Ratings Services have affirmed the ratings for the City of Kansas City, Mo.’s outstanding special obligation bonds at A1 and AA-, respectively, both with a stable outlook.
“Staff and elected officials have worked collaboratively to ensure that Kansas City is nationally recognized and the affirmation of the City’s credit ratings is no exception,” said Mayor Pro Tem Cindy Circo. Alongside City staff, Mayor Pro Tem Circo participated in the recent credit rating agency presentations and played a valuable role communicating the City’s recent accomplishments to them.
The ratings also apply to the upcoming issuance of special obligation bonds to be priced on March 11, 2014 in the maximum amount of $124.5 million. The bonds will be issued in three series to fund the Downtown Streetcar Project, City building improvements to meet the Americans with Disabilities Act’s requirements, traffic signal replacements at 15 intersections, and a new enterprise permitting software system designed to streamline permitting processes and improve the customer experience. In addition, the City plans to restructure a portion of the outstanding debt originally issued to construct public infrastructure in the Power & Light District downtown.
At the same time, Moody’s and Standard and Poor’s affirmed the ratings on the City’s general obligation debt at Aa2 and AA, respectively, both with stable outlook. In its report, Moody’s cites the City’s recent pension reform efforts as a credit positive and credits the City with “strong managerial oversight” of its financial position. This week, Moody’s featured the City’s recent pension reform in its Credit Outlook publication.
Standard and Poor’s views the City’s management conditions as “very strong” indicating that “practices are strong, well-embedded and likely sustainable.” Standard and Poor’s also acknowledged that the City is “taking steps to better fund its pension while keeping the budget in balance.”