Last Monday, the agency Moody's announced it was upgrading Redwood City's water bond rating from “Aa3 with a positive outlook” to Aa2, which is the third-highest long-term credit score the rating agency assigns to high-quality fixed-income securities with very low risk.
“We are very pleased that Moody's has recognized the city's careful financial management with one of its highest credit ratings,” said City Manager Melissa Stevenson Díaz.
In that sense, the official highlighted that Moody's affirmed the strong financial position of Redwood City with the coverage of debt service and projected cash to remain healthy with solid financial metrics.
Rating agencies such as Moody's periodically review the City's Annual Comprehensive Financial Report ?ACFR, for its acronym in English? and additional details about financial performance and management practices to affirm or adjust your ratings.
Moody's has rated the city's water bonds at Aa3 for nearly a decade. In 2021 they added "with a positive outlook" to the rating to signal that their position was even stronger, and the further upgrade to the Aa2 rating confirms Redwood City's financial health.
Of note, the City has approximately $38.8 million in outstanding revenue bonds.
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