Moody's reaffirms Springfield's Aa1 rating

“What this means for taxpayers is that we will be spending less money on interest and more on projects,” Decker said in a news release.

Moody's upgraded the city's credit rating to Aa1 in July 2011 from Aa2, the level held since 1998.

According to the Moody's rationale for the 2012 reaffirmation, the Aa1 general obligation rating reflects Springfield's large, diverse tax base; its role as a regional hub in southwest Missouri; adequate reserve levels and liquidity; and a leveraged debt position with significant additional borrowing planned.

Moody's also gave an Aa2 rating to $28.1 million in sewer bonds the city plans to issue next week. Proceeds would finance improvements to Springfield's sewer system, a result of the city entering an amended consent judgment with the Missouri Department of Natural Resources, which has approved the city’s Early Action Program, allowing $50 million to be spent during the next seven years.

Decker said the rating came about after planned sewer rate increases already had been approved by council.

“This provided support that there will be ample coverage within the sewer revenue to cover the bonds,” Decker said in the release.