The city of Tacoma’s bond rating has climbed again, with Moody’s Investors Service elevating the city’s limited tax general obligation bonds from an “A1” rating to “Aa3.”
“We’re pleased to receive this ratings upgrade, and will continue to implement sound budgetary controls and oversight which will support the city’s sustained fiscal health,” said Finance Director Andy Cherullo in a news release Thursday.
The lift means the city can borrow money at a cheaper rate because investors are more confident the city can pay them back. A small improvement in the bond rating can mean big savings for the city’s $179.84 million in LTGO debt.
Moody’s increased the rating after reviewing the methods used to rate U.S. local government general obligation debt.
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Fitch Ratings approved an increase to the LTGO debt in May, from “A “to “A+”