City of Apple Valley Credit Rating
On March 25, 2014 Standard and Poor’s assigned the City a bond rating of “AAA Stable”, their highest possible rating. On April 22, 2014 Moody’s Investors Services affirmed the City’s “Aaa” bond rating, their highest possible rating.
It is extremely rare for a City to hold two AAA bond ratings. In fact, only 1.2 percent of cities in Minnesota currently enjoy this distinction. Achieving the AAA ratings from each credit rating agency is a significant milestone that has been reached by just 10, out of a total 854, Minnesota cities.
Bond ratings are a reflection of the City’s financial strength and stability. Top bond ratings are earned based on the strength of the economy and fiscal management practices. In the eyes of both rating agencies, Apple Valley rates high in terms of budgetary performance, flexibility, financial liquidity, and debt management.
As stated in Moody’s rating report, the City’s “Aaa rating reflects the mature residential suburban city with improving valuations, strong financial operations supported by ample reserves, and manageable debt burden with a modest amount of future borrowing anticipated”.
The City has continually improved its financial strength over time. Since 2001, Moody’s has progressively upgraded the City’s bond rating four separate times.
With two top bond ratings in hand, the City of Apple Valley will achieve the lowest possible borrowing costs when issuing bonds in the financial marketplace. Low borrowing costs translate into ongoing savings for all city taxpayers.