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City of Perry's Bond Rating Upgraded
Moody’s Investor Service upgraded the City of Perry’s general obligation unlimited tax (GOULT) rating to Aa2 from Aa3.
The issuer rating reflects the City’s ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. The GOULT rating applies to various revenue bonds issued by the Perry Public Facilities Authority but backed by the City’s GOULT pledge.
The Aa2 issuer rating reflects the City’s solid economic growth that is outpacing the nation and helping strengthen resident income and full value per capita metrics. The rating also incorporates the City’s strong fund balance (30%) and liquidity metrics (40%).
Strong growth in property taxes, charges of services, and utility revenues helped the City maintain balanced operations despite consistent growth in personnel costs, resulting in gradual additions to reserves in recent years.
The City’s relatively low long-term liabilities ratio (around 110% of revenue) and fixed cost ratio (around 5% of the revenue) will continue to support the issuer rating.
The water and sewer revenue bond rating was also upgraded to Aa3 after a multi-year trend of solid debt service coverage, the City’s continued practice of prudently phasing in gradual rate increases each year, and steady growth in the consumer base.
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