LAKELAND, Tennessee (August 28, 2015) – Moody’s Investor Service has announced that Lakeland, TN has maintained its high-grade credit rating!
Moody’s Investors Service has assigned an “Aa3” to Lakeland, TN’s $20 million General Obligation Capital Outlay Notes, Series 2015. Concurrently, Moody’s has affirmed the Aa3 issuer rating.
The “Aa3” rating is described as high-quality and very low credit risk. The rating reflects the city's strong financial position marked by solid reserve levels, moderately-sized and affluent tax base, and slightly elevated debt profile which amortizes rapidly.
According to Moody’s, an obligor with an Aa3 rating has “very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.”
The credit rating is a financial indicator to potential investors of debt securities. These are assigned by credit rating agencies such as Moody’s, Standard & Poor’s and Fitch Ratings to have letter designations (such as AAA, B, CC) which represent the quality of a debt. Moody’s assigns credit ratings of Aaa, Aa, A, Baa, Ba, B, Caa, Ca, and C.
Among multiple positive factors cited by Moody’s in assigning the rating is continuance of the City’s strong financial position, manageable debt, and strong management and governance as evidenced by its healthy reserve levels.
Jim Atkinson, Lakeland City Manager, said “Moody’s has confirmed the City’s strong financial position and commitment to responsible fiscal management. It is exciting to be recognized for the City’s carefully-planned growth and development.”
About Moody’s Corporation:
Moody’s Corporation (NYSE: MCO) is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Further information is available at www.moodys.com.