Moody's upgrades city credit rating to Aaa

Moody's Investors Service, which monitors and evaluates the bond credit ratings of commercial and government agencies, upgraded the rating of the City of Vestavia Hills General Obligation Limited Tax from Aa1 to Aaa.

An Aaa GOLT rating is the highest credit rating an entity can achieve from Moody's, and obtaining it depends on a variety of factors, including General Fund health, debt levels and servicing and legal security.

In the announcement, Moody's analyst Christopher Coviello explains, "The Aaa GOLT rating reflects the city's full faith and credit pledge and property tax limitations," meaning that the city has instituted and committed to repaying its debt and bond issues within its taxation limitations.

City Manager Jeff Downes said that the city is proud to have obtained the rating, as it is exceedingly difficult to obtain.

"It is a validation of the City's efforts to conservatively manage its finances while also addressing, in an appropriate manner, its capital needs," he said in an email. 

The full upgrade announcement, along with an explanation of the firms methodology, can be found on the Moody's website.