Bond credit rating agency Moody’s Investors Service has affirmed Coral Springs’ Aaa general obligation rating. Coral Springs is one of just two cities in Florida (Boca Raton being the other) and 22 cities nationwide to have earned a Aaa general obligation bond rating from all three rating agencies (the other two rating agencies are Standard and Poor’s and Fitch).
According to Moody’s, “The Aaa general obligation rating is based on the City's reduced, but still sizable tax base, sound financial management practices reflected in historically strong financial reserves, and a minimal debt position with material future borrowing plans.” Moody’s also acknowledged the recent steps the City has taken to strengthen its financial position, including cost containment measures and its conservative budgeting practices.
“I’m pleased Moody’s recognized the improvements we made to strengthen our financial position,” City Manager Erdal Donmez said, “Maintaining a Triple-A bond rating during these very difficult economic times was not easy but the diligent efforts of our City Commission working alongside staff made it happen.”
Much like an individual’s credit rating, a bond rating is a measure of an organization’s credit worthiness. Organizations rated AAA demonstrate the strongest creditworthiness relative to other tax-exempt issuers. AAA bond ratings are often referred to as the ‘Prime’ rating because it symbolizes the highest quality investment with the smallest degree of risk. As a AAA rated city, the Coral Springs is able to borrow at the lowest available rates which provides the lowest cost to the City. As a result, the City of Coral Springs has saved, and will continue to save, millions of dollars in interest and credit enhancements.