Moody's: Springfield maintains Aa1 bond rating

Moody's Investors Service last week reaffirmed the city of Springfield's Aa1 rating for its general obligation bonds.

During his report to City Council last night, City Manager Greg Burris said the police-fire pension sales tax and improvement of the plan's funding ratio have been key to maintaining the top rating.

"This solid rating means the city can sell bonds at a lower interest rate than other cities that do not have a strong rating, allowing us to devote more taxpayer dollars to capital projects and spend fewer dollars paying interest," Burris told council, according to the minutes.

Burris said the Moody's report cited Springfield's strength as a sizable tax base serving as a regional hub for southwest Missouri, the institutional presence of Missouri State University and the city's reserves and liquidity.

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

Last week, Moody's also assigned an Aa2 rating to Springfield's $14.4 million in special obligation refunding bonds, the proceeds of which would be used to refund the remaining maturities of past leasehold revenue bonds, according to the report.[[In-content Ad]]