FOR IMMEDIATE RELEASE: May 13, 2015
City’s bond ratings affirmed by national credit rating agencies
The City of Kansas City, Missouri is proud to announce that Moody’s Investors Service and Standard and Poor’s Ratings Services have affirmed the ratings for the City of Kansas City, Mo.’s outstanding general obligation bonds at Aa2 and AA, respectively, both with a stable outlook.
“I believe these strong credit ratings reflect not only the fiscal prudence demanded by the City Council and the City Manager, but also confidence in Kansas City as a city on the rise in many ways,” Mayor Sly James said. “I am very proud of the commitment and the hard work performed every day by the dedicated staff members responsible for the City’s debt portfolio and financial position.”
The ratings also apply to the upcoming issuance of general obligation refunding bonds to be priced on May 20, 2015 in the maximum amount of $42.41 million. The bonds will be issued to partially refund the City’s outstanding Series 2007A general obligation bonds for debt service savings. The Series 2007A bonds were originally issued in the amount of $130 million to finance improvements to the Kansas City Zoo, the World War I Museum, and basic infrastructure improvements. In addition, a series of prior outstanding general obligation bonds was refunded with the Series 2007A bonds.
At the same time, Moody’s and Standard and Poor’s affirmed the ratings on the City’s special obligation debt at A1 and AA-, respectively, both with stable outlook. In its report, Moody’s cites the City’s tax base, “stable financial performance” and “prudent fiscal management policies.” The City is also seen as a “regional economic hub.” Challenges for the City cited by Moody’s include the City’s high debt profile and narrow financial reserves.
Standard and Poor’s views the City as “the anchor to the broad and diverse…metropolitan area” with “strong financial practices and policies.” The strengths cited are offset by a “very weak debt and contingent liability profile.”
Media inquiries and requests for information can be addressed to Tammy Queen, City Treasurer in the Finance Department, at 816-513-1024.