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Cary Receives Top Credit Rating From Three Agencies Ahead of July 16 Bond Sale

Post Date:07/11/2019 8:56 AM
  • Cary was rated AAA by Fitch Ratings, Moody’s Investor Service and Standard and Poor’s for the upcoming general obligation bond sale to take place on July 16.
  • The $16,050,000 sale is the remaining authority from the 2012 Community Investment Bond Referendum, and will raise funds for fire, parks and recreation, and transportation projects.
  • The Town has been AAA rated for general obligation debt from all three agencies since 2001.

Full Release

Cary, NC – The Town of Cary’s July 16 bond sale has received the highest possible credit rating from all three major ratings agencies. Fitch Ratings, Moody’s Investor Service and Standard and Poors each assigned Cary a AAA rating for its General Obligation Public Improvement Bonds. Revenue raised from the bonds, the last to be authorized from the 2012 Community Investment Bond Referendum, will go toward fire, parks and recreation and transportation projects.

Just like personal debt, the better an organization’s credit rating, the lower the interest rate paid. The AAA rating enables significant interest expense savings for citizens.

“We are proud of the AAA ratings because they are one way to demonstrate that we are meeting our goals for prudent financial management, which earns not only the confidence of the bond market, but of our citizens,” said Karen Mills, the Town’s chief financial officer.

Each agency also rated Cary’s outlook as stable. “The stable outlook reflects our expectation that the town will continue to benefit from RTP as well as ongoing growth in the local economy,” Moody’s said in its news release announcing the rating. “The outlook further reflects the expectation of continued sound financial operations.”

Standard and Poor’s analysis noted Cary’s ”consistent economic growth” over the past several years. ”As a result, the town has increased capital expenditures in recent years, but still has maintained very strong performance, due to growing revenues and very strong financial management.” Fitch echoed this rationale in its statement: “… management has proactively maintained spending growth in line with revenue growth, and Fitch expects that approach to continue.”

All agencies also affirmed Cary’s AAA rating for its existing general obligation debt. The Town has been AAA-rated for general obligation debt from all three agencies since 2001.

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Primary Contacts

Mary Beth Huber, Deputy Treasurer, (919) 462-3957
Karen Mills, Chief Financial Officer, (919) 469-4110

Resources

Municipal Bond Sales
Rating Symbols Explanation
Standard and Poor’s News Release on Bond Rating
Fitch’s News Release on Bond Rating
Moody’s News Release on Bond Rating

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