According to a release by Moody’s Investors Service, the firm has assigned an Aa2 rating to the City of Delaware’s $14.1 million General Obligation (Limited Tax) Capital Facilities Refunding Bonds, Series 2020. Following the sale, the city will have approximately $53 million of rated GOLT debt outstanding.
According to Moody’s, “The city’s issuer rating represents Moody’s assessment of hypothetical debt of the city supported by a general obligation unlimited tax (GOULT) pledge. The city does not currently have any outstanding debt supported by a GOULT pledge. The pledge supporting the Series 2020 bonds is considered limited tax based on the statutory imposed limit of ten-mills on the ad valorem property taxes pledged.
The Aa2 issuer rating reflects the city’s expanding population and economy near the City of Columbus (Aaa stable) which have fueled income tax growth and supported strong financial operations. The rating also incorporates the city’s prudent fiscal management, very strong reserves and above average debt and pension burdens.”
An Aa2 rating is the third highest credit rating a bond can achieve.
