Moody's Credit Rating
Moody's assigns Aa3 to Lakeland's $48.5M Public Improvement
Bonds, Series 2017
New York (December 7, 2017)
Issue: Public Improvement Bonds, Series 2017
(City of Lakeland School
Project); Rating: Aa3; Rating Type: Underlying LT; Sale Amount: $48,455,000;
Expected Sale Date: 12/14/2017; Rating Description: Lease:
Moody's Investors Service has assigned an Aa3 rating to Lakeland, TN's Public
Improvement Bonds, Series 2017 (City of Lakeland School Project). Moody's also
maintains a Aa3 rating on Lakeland's outstanding general obligation bonds and
The Aa3 rating primarily reflects the city's affluent tax base and strong
financial position marked by ample reserve levels and balanced operations. The
rating also reflects the city's above average debt burden and concentrated tax
The Series 2017 bonds are ultimately secured by the city's unlimited tax
general obligation pledge. The bonds are also secured by lease payments and
other available funds paid by the city to the Industrial Development Board under
the lease agreement.
The site (which includes the middle school) will be leased by the Industrial
Development Board to the city pursuant to the lease agreement. The city is
obligated to make payments to the Industrial Development Board under the lease
in an amount equal to debt service on the Series 2017 Bonds.
Use of Proceeds
The proceeds will be used by the Industrial Development Board of the city of
Lakeland to acquire a parcel of land in the city, where the middle school is
currently located, and to construct and equip a high school for the Lakeland
Lakeland is an affluent city located approximately 23 miles northeast of
Memphis and has a population of approximately 12,556.
The principal methodology used in this rating was US Local Government General
Obligation Debt published in December 2016. The additional methodology used in
this rating was Lease, Appropriation, Moral Obligation and
Comparable Debt of US State and Local Governments published in July 2016. Please
see the Rating Methodologies page on www.moodys.com
for a copy of these
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.
For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com
About Moody’s Corporation
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
Lakeland Maintains High-Grade Credit Rating with Moody’s
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.