Knox County Mayor's Office
Contact: Susanne Dupes Posted on 6-2-2010
215-4439County's Bond Rating Upgraded to Historic High Moody's issues Aa1 rating; Standard and Poor's reaffirms AA+ rating
County Mayor Mike Ragsdale and Chief Financial Officer John Troyer have been informed that the bond rating agency Moody’s has issued an Aa1 rating for Knox County. The Aa1 rating, an upgrade from the previous rating of Aa2, represents the highest rating in the County’s history.
Moody’s considers a variety of variables in determining how a local government will be rated, including overall credit strength, low net debt levels, per capita income and area unemployment rates. According to Moody’s, Knox County’s Aa1 rating reflects the County’s “solid financial position, and manageable debt profile”. According to the information released by Moody’s last week, the agency expects the county’s financial position to remain solid, “given prudent fiscal management and a demonstrated commitment to maintaining healthy reserve levels.”
The County’s other bond rating agency, Standard and Poor’s, has for the third time reaffirmed the County’s AA+ rating, noting the County’s track record of conservative financial management. In doing so, they noted the County’s unreserved fund balance (“rainy day” fund), also describing it as “very strong.” Standard and Poor’s also examined the county’s borrowing practices and noted that “the County’s overall net debt burden remains low.”
“Knox County’s economy is resilient. Our focus on the fundamentals of low taxes, economic development and strong public education is obviously taking us in the right direction,” commented Mayor Ragsdale. “Our willingness to make prudent investments in community assets such as libraries and senior centers helps us attract quality companies like Green Mountain Coffee and Sysco, further strengthening our economic picture.”
KnoxCountyhas not had a property tax increase since 1999. Currently, Knox County has the lowest tax rate of any of the four urban counties (Davidson, Hamilton, Knox, Shelby).
Troyer noted that it is important to remain vigilant in observing financial restraint in managing the public’s money, “I am excited about this historic first with both of our bond rating agencies giving us our highest ever scores. This makes an important statement about our economic picture.” Troyer went on to say, “These remain challenging times. We will continue to restrain spending, make cuts where we can and watch our financial situation very closely.”
