Press Release: Moody’s Investors Service upgrades Greene County’s credit rating from Aa2 to Aa1
April 1, 2015
Xenia, OH – Yesterday, March 31st, Moody’s Investors Service announced they have upgraded Greene County’s credit rating from Aa2 to Aa1 because of the County’s strong financial position and future outlook. Please see the following announcement from Moody’s for more information.
Rating Update: Moody's upgrades Greene County's (OH) GOLT to Aa1 from Aa2; positive outlook removed
Global Credit Research - 31 Mar 2015
Aa1 rating applies to $109M of outstanding GOLT debt
GREENE (COUNTY OF) OH Counties
NEW YORK, March 31, 2015 --Moody's Investors Service has upgraded to Aa1 from Aa2 the rating on Greene County's (OH) general obligation (GO) debt. The Aa1 applies to $109 million of Moody's rated general obligation limited tax (GOLT) debt. Concurrently, Moody's has upgraded to A1 from A2 the lease revenue rating on Greene County Port Authority's $5.1 million Adult Service Facility Revenue Bonds, Series 2009.
SUMMARY RATING RATIONALE
The Aa1 GOLT rating reflects the county's solid fiscal management with ample reserves and strong local economy anchored by presence of Wright-Patterson Air Force Base. The Aa1 also incorporates the County's above average pension burden and low debt net of GO obligations covered by the County's financially healthy water and sewer utilities.
The A1 lease revenue rating, which is notched off of the GOLT rating, reflects the non-essential nature of the financed adult day care facility, appropriation risk, and the lack of mortgage interest or lien on the financed facility.
Outlooks are generally not assigned to local government credits with this amount of debt outstanding.
WHAT COULD MAKE THE RATING GO UP
- Significant improvement in local socioeconomic characteristics
- Continuation of strong financial management and positive operating results
WHAT COULD MAKE THE RATING GO DOWN
- Material declines in reserves and/or liquidity
- Decline in tax base valuations
- Large tax base near the City of Dayton (Aa2 Stable) anchored by Wright-Patterson Air Force Base
- Very strong reserve position
- Positive sales tax revenue trend
- Low debt net of GO obligations covered by water and sewer utilities
- Above average pension burden
- Dependence on economically sensitive sales tax revenues to fund general operations
For questions, please contact:
Brittany Melzer, Greene County Board of Commissioners
35 Greene Street, Xenia, Ohio 45385