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City of Davenport’s Credit Ratings Reaffirmed

City of Davenport’s Credit Ratings Reaffirmed by Moody’s and S&P Global
Posted on 10/23/2020
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Oct. 22, 2020 – The City of Davenport’s credit ratings AA (S&P Global) and Aa3 (Moody’s) have been reaffirmed ahead of the City’s the upcoming 2020B issuance. The ratings demonstrate that the City’s bonds are judged to be of high quality and remain a very low credit risk for investors. Positive credit ratings result in lower borrowing costs and increase Davenport’s ability to save money on financing, resulting in more available funds to spend directly on capital projects such as street improvements.

”We view the city's management as strong, with good financial policies and practices under our Financial Management Assessment (FMA) methodology,” stated S&P Global. “The rating and stable outlook reflect Davenport's successful maintaining of very strong finances and compliance with its reserve and liquidity policy.”

S&P Global Ratings assigned a stable outlook for Davenport as a result of the City’s ability to successfully maintain very strong finances as well as compliance with its reserve and liquidity policies. Moody’s also emphasized several credit strengths: the large and stable tax base of the City, and strong operating reserves and liquidity relative to its adopted budget. These ratings demonstrate that Davenport has a very strong capacity to meet its financial obligations.

“The city’s well-managed finances have resulted in steady improvement in operating performance relative to its budget,” noted Moody’s. “The City closed fiscal 2019 with its eighth consecutive general fund surplus, increasing general fund reserves to $22M, or 28% of revenue. This is more than double of fiscal 2012 when general fund reserves totaled $10M, or a more limited 15% of revenue.”

At the October 28, 2020 City Council meeting, staff will update the City Council on the results of the bond sale.