City of Clive’s Bond Rating Upgraded by Moody’s to Aaa Status
Today, the City of Clive received an upgraded bond rating from Moody’s to Aaa status. Clive now becomes one of the few communities in Iowa to receive Moody’s highest bond rating, and is the smallest city in Iowa to receive the Aaa rating. The City recently went through a rating process in anticipation of an upcoming bond sale to issue debt for capital improvement projects.
As noted in Moody’s rating action available on their website here, “The Aaa rating reflects the city's strong financial operations, healthy liquidity, and ample revenue raising flexibility. Additionally incorporated in the rating is the city's advantageous location within the Des Moines (Aa2 stable) metro; affluent and growing, albeit modestly sized, tax base; and manageable debt and pension burdens.”
In addition to the rating upgrade, Moody’s outlook for Clive notes, “The stable outlook reflects our expectation that the city's credit quality will remain strong due to the power of the regional economy, structurally balanced financial operations, and healthy reserve levels.”
Clive Mayor Scott Cirksena was excited by the news stating, “Moody’s upgrade of our City to Aaa status provides a powerful statement of how strongly the investment community views what the City of Clive has done with our financial position and long-term debt planning. The upgrade of our rating today is a testament to the decisions our City Council has made as great financial stewards of Clive taxpayer resources, and the guidance that has been provided by our City management team and financial advisers.”
By receiving the Aaa rating, the City of Clive expects to receive favorable interest rates when going to the investment market to issue debt, resulting in decreased costs to Clive taxpayers. The City has an expected sale of a $2.15 million tax-exempt bond issue and a $1.3 million taxable bond issue scheduled for March 9, 2017.